UPDATE 1- Phoenix Technology Income Fund Q1 profit falls

* Q1 EPS C$0.23 vs. C$0.32 last year

* Revenue down 15 pct

May 5 (Reuters) - Canada's Phoenix Technology Income Fund (PHX_u.TO), a provider of oil drilling services, posted a 25 percent fall in its first-quarter profit as demand for Canadian and US drilling services weakened due to a depressed global economy and low oil and natural gas commodity prices.

The company reported net earnings of C$5.5 million ($4.68 million), or 23 Canadian cents per unit, down from C$7.3 million, or 32 Canadian cents per unit, a year-ago.

Revenue fell 15 percent to C$35.5 million from C$42.0 million in the prior-year quarter.

Consolidated operating days for the quarter declined 23 percent to 3,299 days from 4,275 days in the year-ago period.

Due to the low level of activity experienced in the first quarter, the Fund laid off about 18 percent of its work force in late February and early March. A further 6 percent of the remaining staff was laid off in April 2009.

The company said it expects C$10.2 million of total capital expenditures will be incurred in 2009.

Lower oil and natural gas commodity prices in 2009 are expected to continue to adversely impact customer cash flows and their drilling activity, and as a result their demand for Phoenix's drilling services will continue to be weak, the company said.