UPDATE 2-Volterra sees Q3 in line with Street

* Q2 adj EPS $0.40 vs est $0.37

* Q2 rev $40.2 mln vs est $40.1 mln

* Sees Q3 adj EPS $0.38-$0.41 est $0.40

* Shares fall as much as 9.5 pct in extended trade (Recasts; adds analysts' comments, company's outlook, details, updates share movement)

By Manasi Phadke

BANGALORE, July 26 (Reuters) - Chipmaker Volterra Semiconductor Corp (VLTR.O) forecast a third quarter roughly in line with Wall Street expectations and said it expects revenue from servers and storage to be sequentially flat.

The company's shares, which have gained about 55 percent in the past six months, fell 9.5 percent to $25.02 in trading after the bell. They later pared some of their losses to trade at $26.25. They closed at $27.65 Monday on Nasdaq.

The company's second-quarter revenue also came in line with estimates.

"People certainly had a strong growth expectation, but though revenue is in line, it's up 11 percent sequentially, which is still very significant," Noble Financial Capital Markets analyst Suji De Silva said.

The company, which makes low-voltage power supply chips, has consistently surpassed market expectations and issued a strong outlook for two quarters in a row.

For the third quarter, Volterra forecast earnings of 38 cents to 41 cents, before items, on revenue of $41.5 million to $43.5 million.

Analysts were looking for third-quarter earnings of 40 cents a share, excluding items, on revenue of $42.6 million, according to Thomson Reuters I/B/E/S.

Volterra's second-quarter profit benefited due to 86 percent growth in revenue from servers and storage due to high demand from International Business Machines Corp (IBM.N) and Hewlett-Packard Co (HPQ.N), two of the company's largest customers.

The company forecast revenue from servers and storage to be flat in the third quarter on a sequential basis.

Volterra forecast third-quarter gross margins of 62 percent to 63 percent, excluding certain items, slightly lower than the 63.4 percent it posted in the second quarter.

"Given the overall health in corporate IT spending, which has been recovering, and continuing strength in the server market, I would expect them to have a pretty positive outlook for the rest of the second half," Brigantine Advisors analyst Ramesh Misra said.

For the second quarter, the company earned $9 million, or 34 cents a share, compared with $1.1 million, or 4 cents per share, a year ago.

Excluding items, Volterra, whose key competitors include International Rectifier Corp (IRF.N), Intersil Corp (ISIL.O), Linear Technology Corp (LLTC.O) and Texas Instruments Inc TXN.N, earned 40 cents a share.

Revenue jumped 77 percent to $40.2 million.

Analysts were expecting earnings of 37 cents a share, before items, on revenue of $40.1 million. (Reporting by Manasi Phadke in Bangalore; Editing by Maju Samuel)