"Its says the restatment will show and increase in revenues and earnings. So isn't this sell off overdone?"
Yes, as it always is. The market runs on fear and greed, as soon as they heard the word "restatement" they started dumping. From reading the PR release, and the posts here it actually is not a bad thing.
Its the opposite of Enron, Worldcom etc. They actually made more money than previously thought, or just didnt record it in the right quarter. When all the smoke clears I feel OVTI will be fine. I doubled my position today at 17.77, no worries. This is definetly overblown.