UPDATE 1-Diamond Foods restatement wipes out $56.5 mln in profit

Nov 14 (Reuters) - Snack food company Diamond Foods Inc reported restated financial results for fiscal years 2010 and 2011 on Wednesday that erased $56.5 million in profit.

The maker of Emerald snack nuts, Kettle Chips and Pop Secret popcorn also reported a net loss of $2.46 per share for the first three quarters - through April 30 - of fiscal 2012, versus a profit of $1.05 per share in the prior-year restated period.

``Clearly the results for the first three quarters of 2012 demonstrate that Diamond faced challenges,'' said Brian Driscoll, Diamond's chief executive officer.

Diamond also said two members of its board of directors were stepping down and that only one was being replaced, reducing the size of its board to 11 from 12.

Diamond had missed its deadline for restating its financials and has been fighting for months to stay listed on the Nasdaq after its shares tumbled more than 80 percent in the wake of an accounting scandal that claimed the jobs of top executives.

The scandal, which centered around the timing of payments to walnut farmers, ruined its plan to acquire Pringles potato chips for over $2 billion, a move that would have made Diamond the world's second-biggest snack food maker, behind PepsiCo Inc's Frito-Lay.