UPDATE 1-MKS Instruments' Q2 profit down; Q3 view below Street

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July 24 (Reuters) - MKS Instruments Inc (MKSI.O: Quote, Profile, Research, Stock Buzz), a maker of equipment used to produce microchips, reported a sharp drop in quarterly profit and guided third-quarter results well below analysts' expectations, as customers slowed down on capital equipment spending.

The company earned $9.2 million, or 18 cents a share, in the second quarter, compared with $22.5 million, or 39 cents a share, a year ago. Excluding exceptional items, earnings were 21 cents a share.

Revenue fell 16 percent to $171 million.

Analysts were expecting earnings of 25 cents a share, excluding items, on sales of $175.0 million, according to Reuters Estimates.

While demand from the semiconductor industry waned during the quarter, the solar business continued to grow. Sales to non-semiconductor markets grew by 17 percent to 45 percent of the company's total sales.

For the third quarter, the company projected earnings of 12 cents to 19 cents a share, excluding items. It expects revenue of $155 million to $165 million.

Analysts were expecting the company, which had a strong first quarter, to post earnings of 25 cents a share on sales of $174.3 million for the period. (Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by Bernard Orr)