UPDATE 1-Lattice Semiconductor cuts Q3 rev outlook

(Follows Alerts)

* Sees Q3 rev flat to down 4 pct

* Sees softening of demand in communications business

Sept 14 (Reuters) - Chipmaker Lattice Semiconductor Corp slashed its third- quarter revenue outlook, hurt by a recent weakening of demand in its communications business.

The company, which competes with Altera Corp and Xilinx Inc , now expects revenue to be flat to down 4 percent sequentially, implying sales of $83.9-$80.5 million.

It had earlier forecast revenue to be flat to up 5 percent on a sequential basis, for the quarter ended Sept 30.

The Hillsboro, Oregon-based company's shares closed at $5.47 on Nasdaq on Tuesday. (Reporting by Rachana Khanzode in Bangalore; Editing by Sayantani Ghosh)