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NEW YORK (
Zynga(ZNGA - Get Report) was the biggest loser in premarket trading on Friday after the company
missed third-quarter earnings and lowered its 2012 outlook again.
Late on Thursday, the social gamer announced preliminary third-quarter revenue between $300 million and $305 million. Excluding items, the company expects a result between breakeven and a loss of 1 cent a share.
Analysts surveyed by
Thomson Reuters were looking for the
Facebook(FB - Get Report) partner to report break-even earnings on $275.9 million in revenue for the third-quarter.
For the full year, Zynga projected bookings between $1.085 billion and $1.1 billion, down from its previous range of $1.15 billion and $1.225 billion. Adjusted EBITDA is expected to in the $147 million to $162 million range, down from a previous forecast of $180 million to $250 million.
"The third quarter of 2012 continued to be challenging and, while many of our games performed to plan, as a whole we did not execute to our satisfaction," wrote Zynga CEO Mark Pincus, in a statement released after market close. "We're addressing these near-term challenges by implementing targeted cost reductions in the fourth quarter and rationalizing our product R&D pipeline to reflect our strategic priorities."
Investors responded negatively to the numbers, driving Zynga's shares down 22.2% to $2.19 in premarket trading. The developer of games such as
Mafia Wars was also the most active premarket Nasdaq stock on share volume of 1,981,306.
Zynga's preliminary numbers also weighed on Facebook during premarket trading on Friday, pushing the social networker's shares down 2.86% to $21.32. The Menlo Park, Calif.-based firm was another active premarket Nasdaq stock on share volume of 318,305.
Cisco(CSCO - Get Report), which announced promotions for two key executives late on Thursday, rose 0.24% to $18.94 before market open on Friday.
Gary Moore, the company's chief operating officer, now becomes president and COO while
Rob Lloyd, the company's former executive vice president of worldwide operations, becomes president, development and sales. Both executives are seen as possible successors to Cisco's high-profile CEO,
In his new role, Lloyd assumes responsibility for all Cisco's development and sales efforts. Chuck Robbins, who previously ran Cisco's Americas sales region, has stepped into Lloyd's prior role as the company's head of worldwide sales
Apple(AAPL - Get Report) shares dipped 0.27% to $665.02.
--Written by James Rogers in New York.
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