Tomahawk, WI 11/14/2013 (BasicsMedia) –  The inability of the social games developer Zynga Inc (NASDAQ:ZNGA) to come up with new games that tick has not put it in good position with investors. There seems to be pressure on the company’s management to do something. So, has the new CEO Don Mattrick and his team run out of new game ideas? It doesn’t seem so, the management is just plotting and a rebound is just a matter of time.

A look into the game maker’s earning data should help reveal an encouraging trade. In the most recent quarter, the company reported a loss of 3 cents a share at a time when analysts were expecting a loss of nine cents per share. As it can be seen, despite unfavorable business environment, ZNGA was able to come on top of consensus estimate by a significant margin of 6 cents a share. Moving on to revenue, the company easily surpassed the consensus estimate of $148 million to report $202 million in revenue. Following this strong performance, the social games developer’s stock price gapped up 14% reflecting investor confidence. These earnings did not just come above analysts’ estimates, but they also served to validate the kind of works that Mattrick is doing in terms of rebounding the company.

Turning around the fortunes of ZNGA requires patience; otherwise haste can lead to untold cash burn whose effect can be long terms on the company. Mattrick is impressive; he is trying to get the company to start making profits in a very clever way. His strategy is to minimize the company’s operation costs. This is done through austerity and also ditching businesses which cannot perform in line with the bigger picture. The company shut down OMGPOP, a business that it acquired in 2012 at the cost of $200 million. Although this business was expected to improve the company’s earnings, it had turned into a big loss, causing the company about $528,000 daily in losses. It was therefore smart that Mattricks decided to do away with it.

The CEO’s impressive move

After letting go of that loss minting unit, Mattricks has brought in Spooky Cool Labs, this is a real money opportunity for the game maker. It now has the ground laid for its sharp take off. Investors need to turn their attention to one little known fact about the new CEO is that he refused to pursue real money gaming in the U.S. and instead kept in the U.K. because it was clear that the red-hot completion that is posed by the incumbent casinos. In avoid the rush to please investors with a deal that would soon nosedive; Mattricks has saved ZNGA money and added a lifeline. Now its acquisition is expected to expand its online casino offering where the real cake is in digital gaming.

At the moment, ZNGA is relatively cash endowed. It can afford to make steps with its rivals would cringe from. The company has some $1 billion in cash which is quite substantial amount for its turnaround efforts. The really though is that the CEO will need some time to bring the company where it is needed to be.

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