UPDATE 2-Nuance Communications Q2 profit tops Street

* Q2 profit of 24 cents beats estimates by 2 cents

* Q2 net revenue up 13 pct

* Sees Q3 adj EPS $0.23-$0.26

* Sees FY 09 adj EPS $1 to $1.07 (Adds outlook from conference call, analyst comments)

By Shrutika Verma

BANGALORE, May 11 (Reuters) - Speech recognition technology supplier Nuance Communications Inc (NUAN.O) posted quarterly earnings that beat market expectations, helped by tighter cost control, sending its shares up as much as 5 percent.

The company also forecast adjusted earnings of 23 cents to 26 cents a share, for the third quarter, the top end of which was slightly above estimates of 25 cents a share [ID:nWNAB7713].

For fiscal 2009, the company said it sees earnings of $1 to $1.07 on revenue of $1.00 billion to $1.02 billion, both on adjusted basis.

"Revenue in the quarter and for outlook are bit below expectations but it looks like they are able to manage their expenses to meet earnings or earnings per share expectations," Avondale Partners analyst John Bright said by phone.

Chief Executive Paul Ricci said, "Strong expense controls, which we expect to continue for the remainder of the fiscal year, enabled us to exceed profit expectations."

Second-quarter net income was $7.1 million, or 3 cents a share, compared with a loss of $26.8 million, or 13 cents a share, a year earlier.

Excluding items, the company reported earnings of 24 cents a share. [ID:nWNAB7608]

Revenue rose 13 percent to $229.1 million.

Analysts expected earnings of 22 cents a share, excluding exceptional items, on revenue of $245 million, according to Reuters Estimates.

The Burlington, Massachusetts-based company competes with AT&T Inc (T.N), International Business Machines Corp (IBM.N) and Microsoft Corp (MSFT.O).

Shares of the company were up 5percent at $13.54 in after-hours trade. They closed at $13.08 Monday on Nasdaq. (Editing by Ratul Ray Chaudhuri, Anil D'Silva)