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Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 19, 2000
DIGITAL RIVER, INC.
(Exact name of Registrant as specified in its charter)
Delaware 000-24643 41-1901640
(State or other jurisdiction of (Commission File No.) (I.R.S. Employer
incorporation or organization) Identification No.)
9625 W. 76th Street, Suite 150
Eden Prairie, Minnesota 55344
(Address of principal executive offices) (Zip code)
(952) 253-1234
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
As of the quarter ending September 30, 2000, the Registrant will
commence reporting its company wide revenues on a net basis. Such a change in
accounting practices is based upon the consensus reached in Issue
99-19:"Reporting Revenue Gross as a Principal versus Net as an Agent" by the
Emerging Issues Task Force ("EITF") of the Financial Accounting Standards
Board. EITF 99-19 provides guidance regarding net versus gross revenue
recognition. Previously, substantially all revenue generated through the
Company's Software Services division was recognized on a gross basis. Revenue
generated through the E-Business Services division has historically been
reported on a net basis so there will be no change for presentation for this
division. This change reflects a new reporting presentation only and will not
alter the Registrant's net income, either historically or in the future. As
an example of Registrant's new reporting format, please refer to Exhibit 99.1
to this form 8-K.
ITEM 7. EXHIBITS
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20.1 Press release of the Registrant dated October 19, 2000.
99.1 Reclassified Statements of Operations
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
DIGITAL RIVER, INC
(Registrant)
Date: October 20, 2000 BY: /s/ ROBERT E. STRAWMAN
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Robert E. Strawman
Chief Financial Officer
(Principal Financial and
Accounting Officer)
