UPDATE 1-Cadence Design Q2 profit tops Street, raises 2010 view

* Q2 EPS $0.07 vs est $0.03

* Q2 revenue up 8 pct

* Sets Q3 adj EPS view $0.01-$0.03, rev $225 mln-$235 mln

* Raises 2010 forecast

*

July 28 (Reuters) - Chip-design software maker Cadence Design Systems Inc (CDNS.O) reported quarterly profit above Wall Street estimates on lower expenses and raised its 2010 forecast.

For the second quarter ended July 3, net income was $49.4 million, or 19 cents a share, compared with net loss of $74.4 million, or 29 cents a share, in the year-ago period.

Excluding items, earnings were 7 cents a share.

Analysts on average had expected earnings of 3 cents a share, according to Thomson Reuters I/B/E/S.

Total expenses decreased 16 percent to $221.1 million in the quarter.

Total revenue rose 8 percent to $227.1 million, and beat analysts' view of $220.9 million. Product revenue -- the largest contributor to total revenue -- rose 15 percent to $117.1 million.

For 2010, the company now expects earnings of 12 cents a share to 16 cents a share, on revenue of $900 million to $925 million. It had earlier forecast earnings of 5 cents to 15 cents a share on revenue of $865 million to $900 million. [ID:nWNAB0511]

Analysts on average were looking at earnings of 15 cents a share, on revenue of $897.1 million.

Shares of the San Jose, California-based company closed at $6.45 in regular session on Nasdaq Wednesday. (Reporting by Sweta Singh in Bangalore; Editing by Unnikrishnan Nair)