UPDATE 1-MEMC Electronic Q3 profit tops Wall Street view

(Adds supply contract, Q4 outlook, share movement)

Oct 25 (Reuters) - MEMC Electronic Materials Inc (WFR.N) posted a 66 percent rise in quarterly profit, beating Wall Street Estimates, and signed a wafer supply contract that would generate revenue of $7 billion to $8 billion over 10 years, sending its share up 10 percent in late electronic trade.

The supplier of silicon wafers to the microchip industry said it would provide solar wafers to German solar-system maker Conergy (CGYG.DE).

For the third quarter, the company earned $151.5 million, or 65 cents a share, compared with $91.1 million, or 40 cents a share, a year ago. Sales rose 16 percent to $472.8 million. Excluding items, MEMC earned 81 cents a share.

Analysts on average expected the company to earn 79 cents a share, on revenue of $477.3 million, according to Reuters Estimates.

"Semiconductor inventory levels appear to have declined from second quarter levels, resulting in improved demand indications from some customers," Chief Executive Nabeel Gareeb said in a statement.

Gross margin in the third quarter declined sequentially due to a power outage in the company's polysilicon plant in Pasadena, Texas.

MEMC said it expects revenue of $540 million to $545 million for the fourth quarter as demand from solar applications continues to be robust. Analysts expect revenue of $542.1 million for the period.

Shares of the St. Peters, Missouri-based company rose to $65.40 in late electronic trade, after closing down nearly 5 percent at $59.30 Thursday on the New York Stock Exchange. (Reporting by Purwa Khandelwal in Bangalore)