UPDATE 3-LCA-Vision Q1 profit misses Street view, shares tank

(Adds analyst comments, updates share movement)

By Jennifer Robin Raj

BANGALORE, April 29 (Reuters) - LCA-Vision Inc (LCAV.O: Quote, Profile, Research), a provider of laser vision correction services, reported a 37 percent drop in first-quarter earnings that also missed market estimates as procedure volumes declined, sending its shares to their lowest in more than four years.

"Not only are we competing with competitors, we are competing for that discretionary dollar spending," Chief Financial Officer Alan Buckley said in a conference call with analysts.

The company shares have fallen 37 percent year to date, as it struggles to entice reluctant customers to spend on corrective eye surgery in a difficult economic environment.

"We were a little disappointed with the company's operations during the March quarter. We knew it was a difficult operating environment but it does appear that the LCA business model has been bit more susceptible to the downturn of the economy then other providers," FTN Midwest analyst Chris Cooley said by phone.

The company said it will cut its marketing spend by about 15 percent from the first-quarter level, or about $17 million. In February, the company cut almost a fifth of its U.S. work force as a measure to combat lower procedure volumes and reduce costs.

"What the March quarter signifies is that LCA is still in transition from a business model standpoint," FTN's Cooley said.

Net income for the first quarter was $6.9 million, or 37 cents a share, compared with $10.9 million, or 54 cents a share, in the year-ago period.