UPDATE 1-LSI Q1 results beat Street; says may not complete deal

* Q3 EPS $0.12 vs Wall Street view of $0.04

* Says pending acquisition may not be completed

* Reaffirms 2009 view

* Stock down more than 4 pct

Oct 23 (Reuters) - Lighting products maker LSI Industries Inc (LYTS.O) posted better-than-expected quarterly results, reaffirmed its 2009 outlook and said the likelihood of completing a pending acquisition had diminished.

"This is necessary given the lower valuation of peer group lighting companies and our debt averse orientation in these unsettled markets," Chief Executive Robert Ready said in a statement.

However, LSI, which has been working on the deal for the past several months, said it will renegotiate the price and terms of the bolt-on type lighting acquisition.

At present, the new terms have not been agreed upon, it added.

For the first quarter ended Sept. 30, net income was $2.7 million, or 12 cents a share, down from $6.9 million, or 32 cents a share, a year ago.

Revenue also fell 16 percent to $75.8 million.

For more details on the results and outlook, click on [ID:nWNAB0572]

Shares of the company were were down 4 percent to $3.68 in morning trade on Nasdaq. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Anil D'Silva) ((ananthalakshmi.as@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ananthalakshmi.as.reuters.com@reuters.net))