Fundtech results beat Wall Street view

(Reuters) - Fundtech Ltd (FNDT.O) posted a quarterly profit that beat market estimates on demand for its payments management product, but forecast third-quarter earnings that may meet or fall below Wall Street expectations.

The Israeli company, which provides software for electronic-payment systems, said second-quarter net income was almost flat at $1.7 million, or 10 cents a share, compared with the year-ago period.

Excluding stock-based compensation and amortization of intangibles, the company earned 18 cents a share.

Revenue rose 25 percent to $31.6 million on demand for its payments product, Global PAYplus.

Analysts on average expected the company to earn 15 cents a share, before items, on revenue of $30.4 million, according to Reuters Estimates.

For the third quarter, the company expects earnings of 18 cents to 22 cents a share, excluding items, on revenue of $31 million to $32 million.

Analysts were expecting earnings of 22 cents a share, before items, on revenue of $32 million.

For fiscal 2008, the company still expects earnings of 70 cents to 80 cents a share, before items, on revenue of $123.5 million to $126 million.

Analysts were expecting earnings of 75 cents a share, before items, on revenue of $124.5 million.

Shares of the company, which competes with ACI Worldwide Inc (ACIW.O), closed at $14.84 Wednesday on Nasdaq.

(Reporting by Purwa Naveen Raman in Bangalore; Editing by Vinu Pilakkott)