By Saqib Iqbal Ahmed

BANGALORE, Oct 26 (Reuters) - Epiq Systems Inc, a provider of software to legal professionals, posted a higher quarterly profit but fell short of market estimates, hurt by a decline at its electronic discovery and settlement administration segments.
The company reported a net income of $4.9 million, or 12 cents a share, compared with $4 million, or 10 cents a share, a year ago.
Total revenue was down about 2 percent at $57.8 million.
Operating revenue at Epiq's electronic discovery segment fell 19 percent to $12.2 million and its settlement administration segment revenue fell 42 percent at $13.6 million.
However, revenue at the company's bankruptcy segment jumped 93 percent to $25.4 million.
Analysts had been anticipating a sequential improvement in the high-margin e-discovery segment as budgetary pressures ease at businesses.
"I had been expecting this business (electronic discovery) to be bottoming out, because it had been relatively flat for the last three quarters, and now it has taken another step down," analyst Richard Shannon at Northland Securities said.
Excluding items, the company reported earnings of 17 cents a share.
Analysts, on average, were expecting earnings of 18 cents a share, on revenue of $54.6 million, according to Thomson Reuters I/B/E/S.
Shares of the Kansas City, Kansas-based company were down 2 percent at $14.35 in trading after the bell. They closed at $14.63 Monday on Nasdaq.

(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Pradeep Kurup) Keywords: EPIQSYSTEMS/ (saqib.ahmed@thomsonreuters.com; within US +1 646 223 8780; outside U.S +91 80 4135 5800; Reuters Messaging saqib.ahmed.reuters.com@reuters.net)

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