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Zynga Plunges on Earnings Miss, Guidance

First sentence has been changed to reflect Zynga's share price.

NEW YORK ( TheStreet) -- Shares of social gaming company Zynga (ZNGA - Get Report) fell following a weak second-quarter earnings report.

Zynga, which derives a significant portion of its revenue from Facebook (FB - Get Report), reported second-quarter earnings of 1 cent a share on $332 million in revenue. Facebook is scheduled to report its earnings tomorrow.

Analysts polled by Thomson Reuters expected the San Francisco-based company to generate 6 cents a share on $344.85 million in revenue.

CEO Mark Pincus mentioned the decline in bookings. "Despite this, we're optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web," Pincus said in a company statement.

Zynga also sharply cut its fiscal year 2012 forecast, citing "delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something." It now sees earnings of 4 to 9 cents a share. Wall Street analysts are looking for earnings of 27 cents per share.

Shares of Zynga closed up sharply in Wednesday trading, gaining 3.32% to wind up at $5.08. Shares are rocketing lower in after-hours, down 36.98% to $3.20, according to Nasdaq.com.

The company will hold a conference call at 5 p.m. EST to discuss the results.

Interested in more on Zynga? See TheStreet Ratings' report card for this stock.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

-- Written by Chris Ciaccia in New York

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