Zynga Swings to a Quarterly Profit

4:47 PM PST 04/24/2013 by Paul Bond

Shares of the game-maker fall after the closing bell on soft guidance.

Mobile game-maker Zynga swung to a profit in the first quarter, surprising analysts, but then offered disappointing guidance that sent shares 9 percent lower in the afterhours session.

The company, known for such games as Words With Friends and FarmVille, earned $4.1 million, compared with a loss of $85.4 million in the same quarter a year ago. Revenue fell 18 percent to $263.6 million.

Zynga said it expects as much as $235 million in revenue in the current quarter, but analysts were looking for something closer to $258 million.

The stock closed 17 cents higher Wednesday to $3.35 but was off 30 cents after the closing bell.

Zynga shares, though, are up 30 percent in the past three months, mostly on enthusiasm over the company's entry into online gambling in the U.K. But on Wednesday, CFO Mark Vranesh said he only expects "modest bookings" from that initiative this year.

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