UPDATE 1-Intersil Q2 profit beats Street, gives Q3 outlook

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July 23 (Reuters) - Chipmaker Intersil Corp (ISIL.O) posted better-than-expected second-quarter earnings, boosted by strong demand for its desktop and notebook power management solutions, and forecast third-quarter earnings, the top end of which was in line with market estimates.

The company, which makes semiconductors for flat panel displays, cell phones, handheld systems and notebooks, earned $38 million, or 30 cents a share, compared with $31.2 million, or 23 cents a share, a year earlier.

Excluding items, it earned 39 cents a share for the second quarter ended July 4. Revenue rose 21 percent to $216.2 million.

Analysts on average expected earnings of 38 cents a share, before special items, on revenue of $217 million, according to Reuters Estimates.

For the third quarter, Intersil forecast earnings of 31 cents to 33 cents a share. Excluding items, it sees earnings of 39 cents to 40 cents a share. Intersil expects sequential revenue growth of 1 percent to 3 percent for the third quarter.

Analysts were expecting earnings of 40 cents a share, before special items, on revenue of $220.6 million.

Shares of the company closed at $24.25 Wednesday on Nasdaq. (Reporting by Deepti Govind in Bangalore; Editing by Deepak Kannan)