UPDATE 1-Safeguard Scientifics to record $120 mln gain in Q2

* Gain on deconsolidation of ownership in Clarient

* Safeguard shares up 12 pct

May 26 (Reuters) - Safeguard Scientifics Inc (SFE.N) said it expects to record an unrealized gain of about $120 million in income from continuing operations in the second quarter on deconsolidation of its holdings in Clarient Inc (CLRT.O).

Shares of Safeguard Scientifics were trading up 12 percent at $1.12 in trading after the bell. They closed at $1.00 Tuesday on the New York Stock Exchange.

Safeguard Scientifics, which invests in life-sciences and technology companies, said the deconsolidation is the result of Clarient's recently completed private placement with Oak Investment Partners.

The private placement in Clarient reduced Safeguard's ownership position to about 47 percent from about 50 percent at March 31, Safeguard Scientifics said.

For the first quarter, Safeguard had reported a consolidated net loss of $10.3 million from continuing operations attributable to common shareholders.

For the alerts double-click [ID:nWNAB3471] . (Reporting by Anand Basu in Bangalore; Editing by Vinu Pilakkott)