UPDATE 1-CombiMatrix names new chief executive

* Names Judd Jessup as CEO effective Aug. 23

* Says Q2 diagnostic lab rev up 51 pct

* Cuts restructuring costs by 50 pct to about $1 mln

Aug 16 (Reuters) - Biotechnology firm CombiMatrix Corp (CBMX.O) named Judd Jessup as chief executive, more than a month after its former CEO resigned as part of a restructuring, and said its diagnostic lab revenue for the second quarter rose 51 percent.

Jessup, a veteran in the healthcare and managed care industries, was formerly CEO of US Labs, a division of Laboratory Corporation of America Holdings (LH.N). He will join CombiMatrix on Aug. 23.

The company's former CEO Amit Kumar stepped down on June 30 as part of a restructuring to cut costs and focus on its diagnostic business. Chairman Mark McGowan was interim CEO.

The Irvine, California-based company lowered its cash restructuring cost to $975,000 from previous estimate of $1.5 million and said the second quarter includes an impairment charge of $20.3 million.

Shares of the company, which have lost 64 percent of their value since touching a year high in late January, closed at $2.83 Friday on Nasdaq. They have shed more than 40 percent in value since the restructuring was revealed on April 19. (Reporting by Himank Sharma in Bangalore; Editing by Gopakumar Warrier)