FRPT tanking AH >> Force Protection Delays Annual Report
Friday February 29, 5:07 pm ET
Force Protection Delays Filing of Annual Report Due to "Significant Accounting Errors"
LADSON, S.C. (AP) -- Force Protection Inc. said Friday it will delay filing its annual report and restate its previously reported quarterly results for 2007 due to "significant accounting errors."
The military-vehicle maker also indicated that its internal controls are unlikely to have resolved financial reporting problems by March 31. It did not say when it plans to file an annual report with the Securities and Exchange Commission.
Force Protection said an audit of results during a year-end review determined that its recording of accounts payable was flawed. Those recordings related to inventory purchased from a subcontractor as a result of a contract termination.
Though Force Protection did not disclose specifics, the inventory issue may be related to the U.S. Marine Corps' reduction mine-resistant ambush protected vehicle orders. That news, reported in November, sent Force Protection's stock into a freefall.
Furthermore, Force Protection said material weaknesses in its financial reporting were not remedied by Dec. 31 and its internal controls are "likely to be ineffective" as of March 31. The company first identified those weaknesses in a Nov. 13 quarterly report.
Force Protection shares plunged 88 cents, or 21.4 percent, to $3.23 in after-hours trading
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