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Monterey Pasta

(PSTA)

said it might report a third-quarter loss and that it expects sales to fall 8% to 10% from a year ago amid a decline in orders.

The company expects to break even or post a loss of 2 cents a share, which would be well below analysts' estimates of a profit of 6 cents a share. The company earned 8 cents a share last year. Monterey will release results on Oct. 31.

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Analysts expect total sales in the quarter to be $17.42 million. Revenue was $16.57 million in the quarter last year.

Chief Executive Jim Williams said slower-than-expected sales of lasagna items and other items were hurting results.

Looking ahead, however, the company said total sales in the fourth quarter should increase by 7% to 10%. Analysts are calling for sales of $17.5 million.

Shares of Monterey were down 44 cents, or 9.4%, at $4.28 on Wednesday morning.