It is looking like a horror show for investors in Amityville-headquartered NAPCO Security Technologies Inc (NASDAQ:NSSC) as its stock fell 32% in Monday’s premarket deals after warning late on Friday that it had identified errors in past financial statements.
As a result, the company said, it had overstated its financial metrics for the first three quarters of fiscal 2023.
NAPCO, which makes security and fire alarms, more specifically told the market that its inventories were overstated and the cost of goods sold was understated.
Now, it expects to confirm 1Q net income of US$2.9 mllion (down from US$6.4 million), 2Q net income of US$3.7 million (down from US$8.4 million) and 3Q net income of US$9.5mln (from US$10.8 million).
For the fourth quarter, NAPCO said it expects US$44.7 million of sales to drive net income between US$10 million and US$11 million.
In New York, Napco stock was down US$12.94 or 33.69% changing hands at US$25.47.