UPDATE 1-Arctic Cat posts narrower loss, suspends dividend

* Sees wider-than-expected Q4 loss

* Suspends quarterly dividend

* Will significantly lower ATV sales to dealers in Q4

* Aims to cut costs, raise gross margins

Jan 29 (Reuters) - All-terrain vehicle maker Arctic Cat Inc (ACAT.O) posted a narrower-than-expected quarterly loss but forecast fourth-quarter results well below market estimates and suspended its quarterly dividend effective immediately.

Arctic Cat, which has cut about 100 jobs or 7 percent of its workforce, expects a fourth-quarter loss of 85 cents to 95 cents a share on revenue of $90 million to $100 million.

Analysts on average are expecting the company to post a loss of 21 cents a share, before special items, on revenue of $160.2 million, according to Reuters Estimates.

For the third quarter ended Dec. 31, the company posted a net loss of $2.7 million, or 15 cents a share, compared with a net loss of $10.5 million, or 58 cents a share, a year earlier.

Net sales rose 9 percent to $174.7 million.

The company said it plans to significantly lower ATV sales to its dealers in the fourth quarter, which will hurt revenue and profitability this fiscal year.

Arctic Cat, which is streamlining its operations to two production lines from three, said it would implement other initiatives aimed at improving gross margins by 300 to 400 basis points and lowering operating expenses by 10 percent to 15 percent.

Shares of the Minneapolis-based company closed at $4.90 Wednesday on Nasdaq.

For the alerts, please double-click [nWNAB5380] . (Reporting by Anne Pallivathuckal in Bangalore; Editing by Mike Miller)