UPDATE 1-ON Semiconductor Q2 profit beats Wall Street

Wed Aug 4, 2010 5:51pm EDT

* Q2 adj EPS $0.24 vs est $0.23

* Q2 rev $583.3 mln vs est $573.8 mln

* Sees Q3 rev $585-$610 mlnn vs est $593.9 mln

* Shares fall 2 pct after the bell

Aug 4 (Reuters) - Chipmaker ON Semiconductor Corp (ONNN.O) posted a second-quarter profit that beat Wall Street expectations by a penny, helped by record gross margins.

The company also forecast third-quarter revenue in the range of $585 million to $610 million, the mid-point of which came in above analysts' average expectations of $593.9 million, according to Thomson Reuters I/B/E/S.

For the second quarter ended July 2, the company, which makes audio and power management chips used in mobile phones, cars and portable electronics, earned $78.7 million, or 18 cents a share, compared with a loss of $3 million, or 1 cent per share, a year ago.

Excluding items, the company, whose competitors include Intersil Corp (ISIL.O), and Fairchild Semiconductor International Inc FCS.N, earned 24 cents a share, narrowly beating analysts' expectations of 23 cents.

Revenue jumped 39 percent to $583.3 million, while analysts were expecting $573.8 million.

Gross margin came in at 41.8 percent.

Shares of the company fell 2 percent to $6.81 in trading after the bell. They closed at $6.96 Wednesday on Nasdaq. (Reporting by Manasi Phadke in Bangalore; Editing by Unnikrishnan Nair)