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) 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 FarmVille and 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. Shares of Cisco (CSCO), 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, John Chambers. 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) shares dipped 0.27% to $665.02. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV