Last Friday, after markets closed, Napco Security Technologies (NASDAQ: NSSC) released preliminary fourth-quarter results that were underwhelming and warned it had to restate its financials for the prior three quarters. Investors ran for the exits beginning on Monday morning, sending shares down about 40% for the week as of Thursday afternoon, according to data provided by S&P Global Market Intelligence.

Napco is a maker of high-tech electronic security products, including automated locks and access equipment. On Aug. 18, after markets closed, the company reported "preliminary" net sales and net income for the fiscal fourth quarter ending June 30 and provided updates to the prior periods of the fiscal year.

Napco said it generated $44.7 million in sales in the period, short of the $48.1 million that analysts had expected. But the restatements are what really caught investors off guard.

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Source Fool.com