Force Protection to restate past finances

The company plans to restate its statements for the first and second quarters of 2007. Force Protection had previously said it will restate interim financial statements for the third quarter of last year.

The accounting errors include mistakes related to revenue recognition, certain accrued liabilities, inventory and deferred taxes in the proper quarterly periods, the company said.

Force Protection added it does not believe that the "material weaknesses" in its internal control over financial reporting it identified as of the end of 2007 will be remediated by Sept. 30 of this year. The company expects that material weaknesses will be identified in its quarterly reports for the first three quarters of 2008.

The company plans to file an annual 10-K report by Sept. 15. It expects to report sales of about $890 million for the year, up from $196 in 2006, due mainly to contracts awarded under the U.S. military's mine resistant ambush protected vehicle program.

The company said it also expects "significantly lower" net income for 2007 than the $16.6 million it reported in 2006.

Shares closed up 29 cents, or 7.3 percent, at $4.24, then sank 79 cents, or 19 percent, to $3.45 in after-hours trading.