Expedia Inc., the Web travel agency being bought by Barry Diller's USA Interactive, restated more than three years' results yesterday after discovering an error in recording stock-option expense.

The adjustment resulted in a shifting of more expense for the amortization of options into Expedia's fiscal year ending June 30, 2000. The company said its loss for that period was increased by $9.36 million to $127.7 million. The restatement improved results after that year, Expedia said.

Expedia, which disclosed the restatement in a filing to the Securities and Exchange Commission, said the error was discovered in calculating its first-quarter earnings. It adjusted the results to show higher costs in fiscal 2000 for the amortization of Microsoft Corp. options that were converted to Expedia options. The conversion occurred in November 1999 when Microsoft sold part of its stake in the company to the public.

Expedia said its net loss for fiscal 2001 was lowered by $955,000 to $77.1 million in the restatement.

Net income for the six months ending Dec. 31, 2001, was $2.09 million instead of the $472,000 it reported.

In 2002, the company switched to a calendar-year basis for financial reporting. Net income for 2002 was increased by $3.68 million to $70 million in the revision.

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