Zynga to report net loss, take charge

Justin Sullivan/Getty Images

NEW YORK Zynga (ZNGA) expects a loss for the third quarter and says its preliminary results reflect weak demand for some games. It's also taking a charge related to its acquisition of OMGPop, a mobile game maker.

The San Francisco-based online game company said Thursday that it sees a net loss of 12 to 14 cents per share. Excluding one-time items the company expects to break even or post a loss of 1 cent per share.

Zynga also forecast revenue of $300 million to $305 million.

• Silicon Valley isn't sharing Zynga's misery
• Zynga counters suit against Electronic Arts
• Zynga chief marketing, revenue officer resigns

Analysts expect breakeven earnings on revenue of $286.7 million, according to FactSet.

Zynga will take a charge of $85 million to $95 million on its OMGPop acquisition, the company behind "Draw Something."

Zynga shares tumbled 15 percent in after-hours trading.

[Cyberqat]

Gee, it turns out that "We lose $10.00 on every customer but make it up on volume" ISNT a good business strategy.

Who woulda thunk it?