General Automation to Restate

General Automation Inc. said Thursday it may restate financial reports filed in prior periods, acknowledging that some results possibly were overstated.

The American Stock exchange notified the Irvine provider of software services that trading in its stock is being halted at least until the company files its second-quarter financial report. The stock closed Wednesday at 81 cents a share, unchanged.

General Automation said it won’t file a report for the second quarter, which ended March 31, until management determines how the restatement of prior periods will affect those results.

The expected second-quarter loss could exceed $2 million, on revenue of about $16 million.

During the second quarter a year ago, General Automation reported net income of $134,000, or 2 cents a share, on revenue of $9.8 million.

An internal audit by General Automation determined that the accounting problem arose as a result of a continuing program error, which is now corrected, in records of units and was not the result of accounting irregularities or any deliberate actions by company personnel.