Why Zynga (ZNGA) Is Up in After-Hours Trading Today

NEW YORK (TheStreet) -- Zynga  (ZNGA) rose in after-hours trading on Wednesday after the social game maker reported its first-quarter results.

The company posted a net loss of $61 million, which includes a $30 million restructuring charge, down from net income of $4 million in the same quarter one year earlier. Non-GAAP net loss was $6 million, compared to net income of $9 million in the first quarter of 2013.

Diluted net loss per share was 7 cents, while non-GAAP EPS was a loss of 1 cent compared to 1 cent a share in the same period one year earlier. Revenue declined 36% year over year to $168 million.

Zynga also announced in the report that co-founder Mark Pincus would step down from his operational duties as of Wednesday and would instead take on an advisory role. He will remain as Chairman.

The stock was up more than 3.5% in after-market activity.

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Separately, TheStreet Ratings team rates ZYNGA INC as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate ZYNGA INC (ZNGA) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."

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