The third quarter of 2012 continued to be challenging and, while many of our games performed to plan, as a whole we did not execute to our satisfaction. The company may also have to delay some game launches, and Zynga is planning for some 'cost reductions' in the fourth quarter, CEO and founder Mark Pincus said in the release: Some Zynga games - including The Ville, which is currently the subject of an infringement lawsuit brought by Electronics Arts - just aren't as doing as well as Zynga had hoped. After a good start in April, Draw Something's user numbers dropped significantly. The company acquired OMGPOP for a reported $210 million in March, just as OMGPOP's flagship game Draw Something was nearing the peak of its popularity. The company said it will write off between $85 million and $95 million related to the OMGPOP acquisition. Zynga said it expects to report revenue of $300 million to $305 million for its third quarter, as well as a net loss of $90 million to $85 million. Likewise, Zynga said its non-standard measure of profit (which it calls 'adjusted' EBITDA) will likely be about 28 percent lower than expected. The company said it expects 2012 bookings (i.e., sales deals that haven't necessarily yielded revenue yet) to fall short by about eight percent compared to its previous estimate.

Zynga lowered its 2012 outlook and said it will write off nearly half the reported $200 million it paid for game maker OMGPOP in March, in the latest sign of the woes overtaking the social-gaming company.

Omgpop writedown