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CPI Aero sees wider net loss for 2019, 2020 in accounting correction

In June, CPI Aero said it needed to

In June, CPI Aero said it needed to restate yearly and quarterly financial statements related to the accounting of inventory in money-losing contracts. Credit: Google Maps

Shares of CPI Aerostructures Inc., edged lower Thursday after the defense contractor said it expected to report wider net loss figures once it restates financials for 2020 and 2021.

The maker of wings for A-10 attack aircraft, inlets for Sikorsky UH-60 helicopters and aerial refueling probes for the E-2D battle-management aircraft saw its stock fall 2.3% Thursday to close at $2.92.

After the market close on Wednesday, the Edgewood aerospace company announced its net loss would be $2.3 million wider than reported in its 2020 annual report and $2.3 million wider than reported in its 2019 annual report.

The company's 2020 annual report listed revenue of $87.6 million for 2020 and $87.5 for 2019. Net losses were reported as $1.3 million in 2020 and $4.5 million in 2019.

In June, CPI Aero said it needed to restate yearly and quarterly financial statements related to the accounting of inventory in money-losing contracts.

In its latest filing, the company said it was still working on the review of its finances and expects to file an amended annual report "as soon as practicable."

The company, which named Andrew L. Davis as chief financial officer in October, had seen turnover in that position after the departure of Vincent Palazzolo in November 2019 and Dan Azmon in February 2020. Davis took over from Thomas Powers, who had been serving as acting CFO.

The Securities and Exchange Commission subpoenaed financial records of CPI Aero in May 2020, but 10 months later, the watchdog agency informed the company that it did not plan to press charges in connection with the accounting issue.

The company reported having 267 employees as of the end of 2020.

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