UPDATE 2-CRA International Q2 beats estimates, shares rise

* Q2 adj EPS $0.31 vs est $0.28

* Revenue, ex items, $69.3 mln vs est $67.9 mln

* Sees increased activity in FY 2009 in Middle East

* Shares rise as much as 13 pct (Adds analysts' comments, background; updates share movement)

By Abhinav Sharma

BANGALORE, June 9 (Reuters) - CRA International Inc (CRAI.O) posted better-than-expected quarterly results helped by more projects in the Middle East, sending shares of the business and legal consultancy company up as much as 13 percent.

Chief Executive James Burrows expects the increased level of activity to continue for the remainder of the fiscal year in the Middle East region.

"They have signed some fairly decent-sized deals recently, and I think the differentiator in the Middle East business is little more visible right now because the deals are long-term deals," said Avondale Partners analyst Sean Jackson.

Jackson also expects the company to benefit from measurable improvement in litigation and court cases, a business that is seeing headwinds now.

Firms like CRA International are expected to profit from the financial meltdown as legal consulting gains ground amidst companies trying to reorganize themselves.

Net income for the second quarter ended May 15 was $1.7 million, or 16 cents a share, compared with a net loss of about $0.5 million, or 5 cents a share, in the year ago period.

Excluding items, the company reported earnings of $3.3 million, or 31 cents a share, for the quarter.

Revenue, excluding certain items, fell more than 26 percent to $69.3 million.

Analysts on an average were expecting earnings of 28 cents a share, before items, on revenue of $67.9 million, according to Reuters Estimates.

The company also said it was managing expenses and internal operations to align them with the level of client activity it was seeing.

After several quarters of restructuring, the company is now seeing stabilization in its business, said analyst James Janesky of Stifel Nicolaus.

CRA International expects the organizational restructuring it completed in the first half of fiscal 2009 to result in annualized savings of $8.5 million.

During the second quarter, the company eliminated 34 consulting positions in offices and practices worldwide, along with about 22 support personnel.

Shares of the Boston, Massachusetts-based company were trading up about 10 percent at $30.52 Tuesday afternoon on Nasdaq. They touched a high of $31.47 earlier in the session.

(Editing by Aradhana Aravindan)