Tuesday, February 5, 2013

Zynga posts smaller 4Q net loss, flat revenue

NEW YORK (AP) - Online game maker Zynga is reporting a smaller net loss and nearly unchanged revenue for the fourth quarter of 2012, a year in which its stock price shrank 75 percent.

The results flew past Wall Street's muted expectations. Zynga's battered shares added nearly 6 percent in after-hours trading as a result.

The San Francisco company behind 'FarmVille' said Tuesday that it lost $48.6 million, or 6 cents per share, in the October-December period. That compares with a loss of $435 million, or $1.22 per share, in the same period a year earlier. Zynga was privately held for most of the 2011 quarter. It began trading publicly on Dec. 16, 2011.

Excluding one-time items, Zynga says it earned 1 cent per share in the latest quarter, better than Wall Street's expectation of a loss of 3 cents per share.

Zynga's revenue was largely unchanged at about $311 million, well above analysts' average estimate of $250 million, as polled by FactSet.

For the current quarter, Zynga said it expects an adjusted loss of 5 cents to 4 cents per share and revenue of $255 million to $265 million.

Analysts were predicting a loss of 1 cent per share and revenue of $268 million.

Shares climbed 16 cents, or 5.8 percent, to $2.90 in after-hours trading after gaining 18 cents to close at $2.74 during the regular session. Zynga's stock has traded in the range of $2.09 to $15.91 in the past 52 weeks.

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