UPDATE 2-Guidance Software Q3 beats Street view

* Q3 adj EPS $0.02 beats est $0.01

* Rev of $23.1 mln beats est of $22.5 mln

* Lowers FY'08 earnings view (Adds outlook from conference call)

Nov 6 (Reuters) - Guidance Software Inc (GUID.O), which develops software used in digital investigations, posted better-than-expected adjusted quarterly earnings, but cut the upper end of its fiscal 2008 earnings outlook due to the current economic slowdown.

Guidance Software now sees 2008 earnings of breakeven to 5 cents a share, compared with its prior expectation of breakeven to 18 cents a share.

The company while reaffirming its fiscal 2008 revenue outlook of $90 million to $95 million said it now sees revenue "slightly in the lower half of the range."

Analysts on an average were expecting earnings of 3 cents a share, excluding special items, on revenue of $89.9 million, according to Reuters Estimates.

For the quarter ended Sept. 30, 2008 the company's service and maintenance revenue rose $23 percent to $10.6 million.

The Pasadena, California-based company recently rejected privately held AccessData Corp's bid to acquire the company for $4.50 a share.

The company posted a third-quarter net loss of $3.7 million, compared with a loss of $0.4 million, a year earlier.

Shares of the company were trading down about 1 percent at $3.47 after closing at $3.51 Thursday on Nasdaq.

For the press release, please click [ID:nBw066400a]. For the alerts, please click [ID:nWNAB9825] [ID:nWNAB9591] (Reporting by Shrutika Verma in Bangalore; Editing by Jarshad Kakkrakandy)