UPDATE 1-Neo Material posts Q1 loss

* Q1 loss $0.04/shr vs yr-ago profit $0.08/shr

* Rev down 56 pct to $28.8 mln

May 8 (Reuters) - Neo Material Technologies Inc (NEM.TO), a maker of magnetic material and magnets, posted a first quarter loss as lower product demand and weak rare-earth product pricing hurt sales.

For the quarter, net loss was $4.4 million, or 4 cents a share, compared with a profit of $8.3 million, or 8 cents a share, a year earlier.

Revenue slumped 56 percent to $28.8 million.

Shares of the company closed at C$1.70 Friday on the Toronto Stcok Exchange. (Reporting by Richa Dubey in Bangalore; Editing by Ratul Ray Chaudhuri)