(RTTNews) - Friday, snack foods maker Lance, Inc. (LNCE: News ) reported a rise in profit for the third quarter, reflecting a 4% increase in revenues, driven by higher net selling prices, increased volume and positive impact from an acquisition. Citing current operating conditions, Lance also trimmed the upper end of its earnings forecast and tightened sales outlook for the full year 2009. Shares of Lance are currently trading down by around 11% on the Nasdaq following the results.

The Charlotte, North Carolina - based company's net income for the quarter rose to $8.80 million or $0.27 per share from $6.81 million or $0.21 per share in the comparable quarter last year.

On average, five analysts polled by Thomson Reuters expected the company to earn $0.37 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

Quarterly net revenues increased to $234.90 million from $225.59 million in the year-ago quarter. Street analysts' had a consensus revenue estimate of $242.13 million for the quarter.

The company's branded product sales for the quarter, which represented about 58% of total revenue for the quarter increased 1% from the same quarter last year. Growth from higher net selling prices, incremental sales from new branded product introductions and incremental revenue associated with the Archway acquisition was largely offset by volume declines from convenience store, food service and up-and-down-the-street customers.

Private brands product sales for the quarter increased around 12% from the prior - year period, bolstered by higher selling prices and volume growth from new product introductions.
David Singer, president and chief executive officer, Lance said, "Sales results for the third quarter were mixed. While we saw continued growth in some of our key product categories, rapid acceleration in the sale of Archway products and solid growth from new product introductions, we faced declines in our sales to convenience store, food service and small up-and-down-the-street customers, which together make up over one-quarter of our branded sales. "

On October 13, 2009, Lance announced its purchase of the Stella D'oro brand as well as certain manufacturing equipment and inventory from Stella D'oro Biscuit Co., Inc., and incurred costs associated with the acquisition of nearly $0.2 million for the quarter.

For the nine-month period, Lance's net income climbed to $24.78 million or $0.77 per share from $10.2 million, or $0.32 per share in the same period last year. Net revenue for nine months rose 8% to $687.07 million from $637.17 million in the prior year period.

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