In the new pilot program, called Mobile Games Publishing, the company will take a direct role in promoting small- and medium-sized games. In return for a cut of the games' revenue, Facebook will provide its own unique resources, such as advertising directly targeted to Facebook's 819 million mobile users.
"We are invested in the success of these games, and in exchange for a revenue share, we will be collaborating deeply with developers in our program by helping them attract high-quality, long-term players for their games," Facebook wrote in a blog post on Tuesday.
In last week's second quarter earnings, payments revenue increased 11% from the same quarter 2012. Games made up 7% of that revenue.Separately, Bloomberg reported Facebook is planning to sell television style ads on its website for $2.5 million each, as the company seeks ways to increase advertising revenue. Facebook declined to comment on the report.
3D Systems (DDD - Get Report) shares closed lower, falling 4.87% to wind up at $48.06 following disappointing second quarter earnings. Despite nearly doubling R&D expenditures and higher market spending, revenue from print materials rose only 11.8% percent, to $29.3 million. Revenue for the entire quarter was $120.8 million, a rise of 45% year-over-year, earning 20 cents per share. Analysts polled by Thomson Reuters were looking for earnings of 24 cents per share on $114.5 million in sales. Nonetheless, CEO Avi Reichental sounded an optimistic note, noting record revenue and expanded gross profit margin. "We believe that our effective advanced manufacturing and consumer growth initiatives are fueling our growth. We are experiencing heavy demand for our advanced manufacturing and consumer solutions and expect to continue to benefit from accelerated adoption of our products and services that is driven by our customers' robust R&D and manufacturing spending worldwide," Reichental said in the earnings release.
Shares of Multimedia Games (MGAM) finished higher Tuesday, gaining 11.02% to close at $33.95 following strong earnings. The manufacturer of casino machines reported earnings of 28 cents per share, up from 19 cents in the year ago period, beating estimates of 24 cents per share. Revenue came in at $48.1 million, slightly ahead of the $47.04 million analysts were expecting. Patrick Ramsey, President and Chief Executive Officer of Multimedia Games, noted the company continues to create games that resonate with its customers. "Our record quarterly revenue and overall strong financial performance reflects our ongoing success in creating great games that resonate with customers," Ramsey said in the earnings release. "We continue to expand the Company's total addressable market while simultaneously achieving growth in existing markets. We delivered quarterly revenue of over $48 million as we deployed over 1,000 new revenue units for the fourth consecutive quarter, with products placed in 21 states, and generated operating margins that continue to be at the high end of our industry peer group, coming in at 29.1% of revenues." -- Written by Laura Berman in New York
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