L90 Inc. will reduce its revenue by $8.3 million when it restates its operating results following an investigation of its financial records by the Securities and Exchange Commission, the company said.

Based on the findings of an internal investigation initiated by the Audit Committee of the firm’s board of directors in February, cash transactions appeared to represent barter arrangements among groups of transactions in 2000 and 2001 involving multiple vendors and service providers. Other revenue transactions were written off as bad debts or generated concerns about the services provided, the company said.

“The results will be restated because these transactions do not appear to meet the criteria for revenue recognition under generally accepted accounting principles,” the company said in a statement.

The accounting periods affected include the quarter ended Sept. 30, 2000, the year ended Dec. 31, 2000 and the quarters ended March 31, June 30 and Sept. 30, 2001.

L90 will file its annual report and quarterly report for the quarter ended March 31, 2002 later this month, the firm’s general counsel Peter Huie, said in a statement.

After being notified by the SEC in February of the investigation, L90, an online media and marketing company based in New York, hired forensic accountants to conduct the internal review. In addition to the specific revenue period under scrutiny, the inquiries also involved two transactions between L90 and Homestore.com Inc.

The firm continues to cooperate with the SEC and Nasdaq, which had requested from L90 earlier this year specific information pursuant to a marketplace rule.

In March, L90 halted merger plans with e-Universe in a cash deal worth up to $55 million and announced that two top executives were leaving. John C. Bohan, president and CEO, resigned and Thomas A. Sebastian, CFO, was placed on administrative leave.

L90 Inc. will reduce its revenue by $8.3 million when it restates its operating results following an investigation of it financial records by the Securities and Exchange Commission, the company said.

Based on the findings of an internal investigation initiated by the Audit Committee of the firm’s board of directors in February, cash transactions appeared to represent barter arrangements among groups of transactions in 2000 and 2001 involving multiple vendors and service providers. Other revenue transactions were written off as bad debts or generated concerns about the services provided, the company said.

“The results will be restated because these transactions do not appear to meet the criteria for revenue recognition under generally accepted accounting principles,” the company said in a statement.

The accounting periods affected include the quarter ended Sept. 30, 2000, the year ended Dec. 31, 2000 and the quarters ended March 31, June 30 and Sept. 30, 2001.

L90 will file its annual report and quarterly report for the quarter ended March 31, 2002 later this month, the firm’s general counsel Peter Huie, said in a statement.

After being notified by the SEC in February of the investigation, L90, an online media and marketing company based in New York, hired forensic accountants to conduct the internal review. In addition to the specific revenue period under scrutiny, the inquiries also involved two transactions between L90 and homestore.com Inc.

The firm continues to cooperate with the SEC and Nasdaq, which had requested from L90 earlier this year specific information pursuant to a marketplace rule.

In March, L90 halted merger plans with e-Universe in a cash deal worth up to $55 million and announced that two top executives were leaving. John C. Bohan, president and CEO, resigned and Thomas A. Sebastian, CFO, was placed on administrative leave.