Protection One Says SEC Questioning Filings

Protection One Inc., the No. 2 U.S. monitored-security company, said the Securities and Exchange Commission has raised questions about its financial statements in a review of quarterly and annual filings. Protection One said it received a letter from the SEC earlier this week, stating the commission staff believes there are errors in its financial data related to the amortization of its Network Multi-Family Corp. acquisition last year. The disclosure was made as Protection One announced second-quarter earnings. The company said its loss for the quarter ended June 30 widened to $7.4 million, or 6 cents a share, from $4.6 million, or 4 cents, a year earlier. Revenue rose to $150.8 million, a 55% increase, from $97 million. Shares of Protection One, based in Culver City, fell 44 cents to close at $4.25 on the New York Stock Exchange.