Force Protection (FRPT: sentiment, chart, options) shares are blazing down the charts today after the company said that a restatement of its 2007 earnings, due to accounting errors, will reveal net income that's "significantly lower" than its 2006 results. The maker of military vehicles added that the same weaknesses that led to the erroneous accounting last year most likely spilled over into 2008 figures, indicating that this year's net income may also need to be restated.

Specifically, FRPT will restate financial results for the first 2 quarters of 2007, in addition to a previously announced restatement of third-quarter 2007 earnings. The company discovered multiple accounting flaws, including errors in recognizing the value of revenue, certain accrued liabilities, inventory, and deferred taxes. FRPT added today that the first 3 quarters of 2008 were likely subject to these same material weaknesses.

Force Protection will file its restated 2007 results on or before September 15, and net income is expected to come in significantly lower than the $16.6 million reported in 2006. However, the company said it will report that net sales more than quadrupled to approximately $890 million.

At last check, FRPT was down more than 6% to trade just shy of $4. The stock is maintaining a foothold atop its 10-week and 20-week moving averages, though it's set to finish the month below its 10-month moving average yet again. This long-term trendline has stifled FRPT since July 2007, with the security finishing north of it just once in the intervening months.