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Zynga: Sales climbing but growth slows

The virtual game maker files an amended S-1 in the run up to its IPO.

Paul Sloan Former Editor
Paul Sloan is editor in chief of CNET News. Before joining CNET, he had been a San Francisco-based correspondent for Fortune magazine, an editor at large for Business 2.0 magazine, and a senior producer for CNN. When his fingers aren't on a keyboard, they're usually on a guitar. Email him here.
Paul Sloan

Zynga, up next among the much-anticipated Internet IPOs, today said that its revenue continues to climb even though growth overall is slowing.

The San Francisco-based maker of Farmville and other social games reported new financial information in an updated filing with the Securities and Exchange Commission. It said that its sales reached $307 million in the latest quarter, up 80 percent from the year-ago quarter. Net income stood at $12.5 million, a 54 percent drop from last year's quarter.

Founder and CEO Marc Pincus said in the filing that research expenses have climbed, as Zynga has been taking longer to develop each game. The company is also spending a lot on hiring. Zynga continues to recruit aggressively, and it now claims 2,789 full-time employees. Pincus founded Zynga in April 2007.

Those employees are hoping their options turn into more than a virtual currency. Zynga could go public this month. It will trade on the Nasdaq under the symbol "ZNGA." The company expects to raise about $1 billion.