NEWARK, NY -- An accounting error of more than $12 million will lead IEC Electronics to restate its financials from its fiscal year ended last September and its fiscal quarters ended last March and June 27.

The EMS company cited errors in the valuation allowance on deferred income tax assets.

The company said that for its fiscal year ended Sept. 30, 2014, it estimates income tax expense was understated and deferred income tax assets were overstated by approximately $12.3 million. The firm added that it likely understated income tax expense and overstated of deferred income tax assets during the March quarter by about $14 million, and overstated income tax expense and understated deferred income tax assets in the June and September quarters by $3,000 and $1.8 million, respectively. 

Revenues and net income or losses before income taxes as previously reported will not be impacted by these adjustments, IEC said. The adjustments also will not impact the company's liquidity, cash flow from operations or other cash position. 

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