WRAPUP 2-LSI, Amkor Q2 profit beats estimates, see strong Q3

* Q2 results beat estimates

* LSI rev falls 25 pct, Amkor rev falls 27 pct

* Companies forecast strong Q3

* Amkor shares up 9 pct; LSI shares down 4 pct (Adds analyst comments, updates share movement)

By Manasi Phadke

BANGALORE, July 29 (Reuters) - Chipmaker LSI Corp (LSI.N) and chip packager Amkor Technology Inc (AMKR.O) posted second-quarter results that beat market estimates as they benefited from higher demand for their products and tighter cost controls.

The companies also issued strong forecasts for the third quarter.

LSI's second quarter was helped by a growth in its storage and networking businesses.

Looking ahead, LSI, which makes microchips and software, sees third-quarter adjusted earnings of breakeven to 6 cents a share on sales of $520 million to $570 million.

Analysts were looking for LSI to breakeven on an adjusted basis on sales of $537.8 million.

However, shares of LSI fell 4 percent in trading after the bell.

Wedbush Morgan Securities analyst Kaushik Roy said some investors are disappointed as the company's revenue outlook is in line with Wall Street estimates.

"The buy side was looking at other semiconductor companies and was expecting a significant raise for LSI, that is, guide Q3 much higher than Street estimates," Roy said.

The analyst, who rates the stock "outperform", however, said the company is being "prudent" in its revenue outlook.

Amkor, a microchip packaging and testing company, expects sales to grow 17 percent to 21 percent sequentially. It sees earnings of 17 cents to 22 cents a share, before items.

Analysts expect the company to earn 6 cents a share on revenue of $514.9 million.

Analyst Roy said consumer demand in the semiconductor industry is improving.

"Most semiconductor companies beat second quarter and gave good guidance," Roy said. "It appears that end demand is improving and so is the current environment of the semiconductor industry, in general."

For the second quarter, LSI, whose chips are used in hard disks, posted a net loss of $61.5 million, or 9 cents a share, in the second quarter, compared with a net loss of $13.6 million, or 2 cents a share, in the year-ago period.

Excluding certain items, it earned 1 cent per share. Analysts were expecting a loss of 2 cents, according to Reuters Estimates.

Amkor, whose customers include Toshiba Corp (6502.T) and IBM (IBM.N), earned $9 million, or 5 cents a share, in the second quarter, compared with $65 million, or 33 cents a share, last year.

Analysts, on average, were expecting a profit of 2 cents a share, before items.

Amkor's sales grew 30 percent sequentially due to inventory adjustments by customers from historically low levels in the first quarter, strength of 3D packaging principally in support of wireless applications and improved demand for its leadframe packages, the company said.

Shares of Milpitas, California-based LSI fell 4 percent to $5.02, while shares of Chandler, Arizona-based Amkor rose 9 percent to $6.09 in trading after the bell. (Editing by Deepak Kannan)