UPDATE 2-Blinkx full-yr loss narrows, sees continued growth

* Full-year oper loss $10.5 mln vs $18.3 mln * Revenue doubles, user base expands 57 pct * Shares down 13 percent as analysts express caution (Recasts first paragraph; adds CEO, analyst comments)

By Tresa Sherin Morera

BANGALORE, May 19 (Reuters) - Blinkx Plc (BLNX.L), an online video search engine, posted a narrower full-year loss, helped by a growing number of users, but concerns over the outlook and the company's cash position hit its shares, sending them down 13 percent.

The company said it was maintaining a "cautious and conservative stance" due to current market conditions, but said it was confident of continued strong growth into 2010.

Analysts expressed caution about the company's lower-than-expected net cash position and its growth outlook amid a tougher economic backdrop.

"Shares are down probably due to the forex loss on cash of $9 million, which I think is larger than the market would have been expecting," analyst Rajeev Bahl of Piper Jaffray said.

This leaves the group's cash position some 2 pence per share lower than expected, Bahl said.

Citigroup analyst Marc Sugarman, who expects Blinkx's growth trajectory to be pressured by lower search traffic and the economic backdrop, expressed caution about the company's prospects.

"Forecasts of a trebling or quadrupling of revenues look optimistic now against this backdrop," he said.