UPDATE 1-Dolby Q2 results top Street, tightens FY outlook

* Q2 EPS of $0.60 beats est $0.46

* Q2 rev jumps 18 pct to $204.1 mln

* Lifts lower end of full-year EPS, rev outlook range

* Shares rise 4 pct after the bell

April 30 (Reuters) - Audio technology licensor Dolby Laboratories Inc (DLB.N) posted quarterly results that handily beat market expectations as its high-margin license revenue rose, and the company tightened its full-year outlook.

The company, whose technology is used in consumer electronics products like DVD players and televisions, now expects to earn $1.76 to $1.91 a share on revenue of $650 million to $700 million for the year.

It had previously forecast earnings of $1.66 to $1.91 per share on revenue of $630 million to $700 million.

Net income for the second quarter ended March 28 rose to $69.5 million, or 60 cents a share, from $56.8 million, or 49 cents a share, a year earlier.

Total revenue rose 18 percent to $204.1 million, helped by the recognition of $23.6 million in revenue related to digital cinema, which was deferred in prior quarters.

Licensing revenue rose 7 percent to $159.9 million.

Analysts on average were expecting earnings of 46 cents a share, excluding special items, on revenue of $180.2 million, according to Reuters Estimates

Shares of the company rose to $41.75 in trading after the bell. They closed at $40.13 Thursday on the New York Stock Exchange. (Reporting by Deepti Govind in Bangalore; Editing by Deepak Kannan)