NAPCO Security slides after co discloses accounting error in previous results

NAPCO Security Technologies

21/08/2023 11:29

** Shares of security device manufacturer and school safety
solutions provider NAPCO Security Technologies  NSSC.O  drop
~34% to $25.42 premarket
    ** NSSC says  management identified errors in calculation of
cost of goods sold ("COGS") and inventory for each of the first
three quarters of fiscal 2023
    ** "Inventories were overstated and COGS was understated,
resulting in overstated gross profit, operating income and net
income for each period," - co
    ** Co alters its previous net income figures as follows:
 Period         Net income     Restated net
                (previously    income
                reported)      
 Q1             $6.4 mln       $2.9 mln
 Q2             $8.4 mln       $3.7 mln
 Q3             $10.8 mln      $9.5 mln 
 
    ** Adds, management determined that a material weakness
existed in internal controls over financial reporting for each
of the previous quarters in FY23
    ** NSSC to report Q4 results on or about Aug. 28
    ** Up to last close, stock rose ~40% this year

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))