Napco Security down 33% after announcing financials restatement; Q4 revenue below estimates

Napco Security (NASDAQ:NSSC) is down 33% to $25.80 in premarket trade on Monday after notifies that the first three fiscal quarters of Fiscal 2023 will have their financials restated due to cost accounting error and reports Q4 prelim earnings.
The company sees Q4 net sales to be $44.7 million vs. consensus of $48.07 million and net income to be between $10.0 Million and $11.0 Million.
The company's balance sheet is still robust as of June 30, 2023, with no debt and roughly $67 million in cash, cash equivalents, investments, and marketable securities.
Management of the company discovered some errors related to the Company's computation of cost of goods sold and inventory for each of the first three quarters of fiscal 2023 during the preparation of the company's consolidated financial statements for the fiscal year ended June 30, 2023.
The company is in the process of preparing amended Forms 10-Q for each of the first three quarters of fiscal 2023 and intends to file such amendments as soon as reasonably practicable after the restatement process is completed.
Net sales during these periods are not expected to be affected by these restatements, the company said in a statement.
Furthermore, the company raises quarterly dividend by 28% to $0.08 /share.

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