UPDATE 1-Power Integrations Q3 beats Street

* Q3 adj EPS $0.36 vs est $0.33

* Q3 rev $60 mln vs est $57 mln

* Sees Q4 rev up 5-10 pct sequentially

Oct 23 (Reuters) - Power Integrations (POWI.O), a maker of analog integrated circuits, posted better-than-expected quarterly results, helped by tighter cost controls.

For the third quarter, the company's net income rose to $9.2 million, or 32 cents per share, from $7.6 million, or 23 cents per share, a year ago.

Revenue rose 12 percent to $60 million, while operating expenses fell 12 percent to $18 million.

Revenue has recovered sharply from the downturn, increasing by nearly 50 percent over the past two quarters, Chief Executive Balu Balakrishnan said.

Excluding items, the company earned 36 cents per share.

Analysts were expecting the company to earn 33 cents a share, excluding items, on revenue of $57 million, according to Thomson Reuters I/B/E/S.

The company expects fourth-quarter revenue to increase 49 percent to 56 percent from the year-ago quarter.

Shares of the company closed at $32.46 Thursday on Nasdaq.

For alerts, double click [ID:nWNAB3465] (Reporting by Mansi Dutta in Bangalore; Editing by Ratul Ray Chaudhuri)