Danny Puff

NEW YORK (AP) Zynga Inc.'s surprise profit in the first three months of the year got overshadowed by a revenue decline, a drop in the number of users and a lower-than-expected second-quarter forecast.

The online game maker's stock fell more than 10 percent in extended trading Wednesday after the first-quarter results came out.

Zynga, which makes "FarmVille" and other games, said Wednesday that it earned $4.1 million, which was breakeven per share. A year earlier, it lost $85.4 million, or 12 cents per share. Adjusted earnings were 1 cent per share in the latest quarter, compared with expectations for a loss of 3 cents.

Revenue fell 18 percent to $263.6 million, from $321 million.

Analysts, on average, had expected revenue of $264.5 million, according to FactSet.

As demand for its Facebook games fades, Zynga has cut jobs, closed game studios and shut down games to reduce expenses and focus only on popular titles. The quarter's expenses fell 34 percent to $268.5 million, from $406.6 million.

The number of people who play Zynga games at least once a month fell 13 percent to 253 million, from 292 million a year earlier. The number of daily players dropped 21 percent to 52 million, from 65 million.

CEO Mark Pincus said in a statement that 2013 will "continue to be a transition year." Zynga, whose games are played mainly on Facebook's website, is working on shifting to mobile games and to its own site off of Facebook.

For the current quarter, Zynga is forecasting an adjusted loss of 3 cents to 4 cents per share on revenue of $225 million to $235 million. Analysts were expecting a loss of 1 cent per share on revenue of $258.1 million.

Shares of San Francisco-based Zynga fell 34 cents, or 10.1 percent, to $3.01 in after-hours trading. The stock had closed up 17 cents, or 5.3 percent, at $3.35 before the results came out.

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TORONTO (Reuters) - BlackBerry said on Wednesday it plans to fill one of the biggest gaps in the app line-up on its new BlackBerry 10 devices with a long-awaited Skype application.

Skype, which was acquired by Microsoft Corp in 2011, allows its users to communicate via voice, video or chat over the Internet, by-passing traditional telephone networks. The service has hundreds of millions of users across the globe.

The announcement comes a day after BlackBerry said its new Q10 smartphone will be available in Canada on May 1, and in the United States before the end of May. The Q10, which comes with the physical keyboard that many of BlackBerry's core fan base cherish, is the second device to be powered by the company's new BB10 operating system.

Skype will be available on the Q10 on launch day. Users of the existing Z10 touchscreen device will have to wait a few weeks more to get Skype, after a software upgrade on the operating system, BlackBerry said.

A smaller app base than Apple's iOS and Google Inc's Android platforms has been one of the biggest criticisms of the new BlackBerry system. It has yet to offer some big-name apps like Netflix and Instagram.

(Reporting by Euan Rocha; Editing by Bernard Orr)

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SAN FRANCISCO (Reuters) - Amazon.com Inc will release a set-top TV box later this year that will stream video over the Internet, challenging Apple Inc's Apple TV device and a similar gadget sold by start-up Roku, BloombergBusinessweek reported on Wednesday.

The box will plug into TVs and give viewers access to Amazon's digital video content, which the company has been expanding, BloombergBusinessweek said, citing three unidentified people familiar with the project.

An Amazon spokeswoman declined to comment.

Amazon's video content is already available on other devices, including Roku, Microsoft Corp's Xbox and Sony Corp's PlayStation 3. However, it is not available on Apple TV.

Having its own gadget will help Amazon put its content more directly in front of consumers and give developers another reason to create apps for Amazon's digital platform, BloombergBusinessweek said.

"Amazon has a good content distribution strategy but not a great one," said Ron Josey, an analyst at JMP Securities. "Doing their own box maybe them admitting that it's a little bit harder to get embedded in all these different devices and platforms."

Amazon has been investing heavily in licensing, distributing and even creating its own digital content such as video, music, apps and games. The company has focused on getting that content on as many devices as possible, rather than building a lot of its own hardware.

However, the company has designed its own gadgets in situations where it believes it can bring a different approach to a market. When it launched its Kindle Fire tablet computer in 2011, for instance, the device's screen was 7 inches which at that time was not a popular size.

JMP's Josey, who said he was not privy to any Amazon plans in this area, speculated on Wednesday that any Amazon set-box device could include the ability to stream music, play games, access other apps and even shop through TVs, rather than just watch videos.

The set-top box is being developed by Amazon's Lab126 division, based in Cupertino, California, near Apple's headquarters. It's being run by Malachy Moynihan, a former vice president of emerging video products at Cisco Systems Inc, BloombergBusinessweek added.

BloombergBusinessweek also said that while Netflix Inc's video streaming service will likely be available on Amazon's TV box, Amazon's own video and music services will be more prominently integrated.

A Netflix spokesman declined to comment.

(Reporting by Alistair Barr; Editing by Carol Bishopric)

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LONDON (AP) The director of award-winning film "Senna" is making a documentary about the late soul singer Amy Winehouse.

Focus Features International says the movie will feature unseen archive footage to tell the story of the art and life of the musician, who died at age 27 in London in 2011 from accidental alcohol poisoning.

The Winehouse family said in a statement Thursday that it had been approached with many documentary proposals, but "Senna" director Asif Kapadia and producer James Gay-Rees presented a vision that would "look at Amy's story sensitively, honestly and without sensationalizing her."

"Senna," the acclaimed 2010 film, focused on the life of Brazilian F1 driver Ayrton Senna. The champion racer was killed in an accident in 1994.

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By Martyn Herman

LONDON (Reuters) - Liverpool striker Luis Suarez was handed a 10-match suspension by the Football Association (FA) on Wednesday following his bite on Chelsea defender Branislav Ivanovic at the weekend.

Suarez accepted a charge of violent conduct after the incident in the 2-2 Premier League draw at Anfield on Sunday but disputed the FA view that it merited more than a three-game ban.

An Independent Regulatory Commission met in London on Wednesday to decide the Uruguayan international's fate and added seven games to the usual ban for violent conduct.

The suspension begins immediately, meaning Liverpool's leading scorer will miss his side's last four games of the season and the first six at the beginning of next term.

Liverpool, who expressed their shock at the Commission's decision, have until Friday (1100 GMT) to appeal.

"Both the club and player are shocked and disappointed at the severity of today's Independent Regulatory Commission decision," Liverpool managing director Ian Ayre said in a statement on the club's website (www.liverpoolfc.com).

"We await the written reasons tomorrow (Thursday) before making any further comment."

Suarez's bite on Ivanovic's arm at Anfield was missed by referee Kevin Friend but television replays showed him sinking his teeth into the Serbian.

WIDELY CONDEMNED

The 26-year-old Suarez, who was banned for biting an opponent while with Dutch club Ajax before joining Liverpool in 2011, apologized after the game and was fined a reported 200,000 pounds ($305,700) by the club.

However, he was widely condemned for his behavior with some reports suggesting he was in danger of being sacked by the club, although Liverpool said this week that they wanted the Uruguayan to see out his four-year contract.

The FA said a three-match ban was "clearly insufficient" for the serious nature of the offence.

There was widespread support for the length of the punishment imposed with former Liverpool player Graeme Souness telling Sky Sports News: "I think 10 games is about right.

"What he did on Sunday is something I've never seen in a game anywhere before."

Former Liverpool midfielder Jamie Redknapp agreed.

"I think you have to accept that the crime that he committed probably warranted a 10-game ban," he said.

"It was an awful act of brutality really what he did and now he won't play for such a long time - it's is going to hit him where it hurts because he wants to play football."

Professional Footballers' Association (PFA) chief executive Gordon Taylor said the length of the sanction sent out a "strong message" but that it was important that the player received counseling to make sure it did not happen again.

Not everyone backed the FA's decision.

"Players who break peoples' legs, who do horrible tackles, get a three-game ban," former Liverpool striker John Aldridge told Sky Sports News.

"It's inconsistent. For me, it's not right, it's over the top."

Controversy has followed Suarez since he joined Liverpool, with his antics often overshadowing his impact on the pitch.

He served an eight-match ban for racially abusing Manchester United's Patrice Evra last season and later angered United manager Alex Ferguson by failing to shake the French defender's hand before their league match in February last year.

He has also been regularly accused of diving to win penalties and free kicks, while in an FA Cup tie this season against minor league Mansfield Town he was again criticized for scoring a goal despite a blatant handball.

Until Manchester United forward Robin Van Persie's hat-trick against Aston Villa on Monday that secured the title, Suarez was leading scorer in the league with 23 goals and he is included on a six-player shortlist for PFA Player of the Year.

($1 = 0.6542 British pounds)

(Reporting by Martyn Herman and Sonia Oxley; Editing by Ed Osmond)

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By Edward Krudy and Pamela Niimi

NEW YORK (Reuters) - As if Suffolk County, home of the Hamptons and playground of the rich and famous on New York's Long Island, didn't have enough financial problems already.

A regulatory filing on behalf of the county dated April 16 shows it accidentally missed an interest payment on some of its debt, including $76.1 million of public improvement bonds, putting the county technically in default. Oops.

The county is wealthy with income per capita well above the national average but it has run into difficulty recently, declaring a fiscal emergency last year after an independent task force predicted a three-year deficit of $530 million.

The county could have a budget shortfall of as much as $250 million by the end of next year, local officials said last month.

The error is more of an embarrassing glitch than anything else. The missed payment - just $722.65 - would be small change for many of the county's residents.

That will buy you fewer than 20 butter-poached lobster rolls (not the most expensive thing on the menu) at Dave's Grill in Montauk, a quaint fishing village on the island's northern tip, or just 10 bottles of Merry Edwards Sauvignon Blanc Russian River 2009 at La Plage in Wading River. A mere picnic.

The mistake was pointed out by the Depository Trust Company, a clearing firm, the day after it was missed and the filing says the error was the fault of the county's escrow agent, M&T Bank.

"The county informed M&T of its error and the escrow agent immediately wired the $722.65 payment to DTC," the regulatory filing said.

So what went wrong? The county was making the first payment in a complicated arrangement that uses $17 million in state HEAL grants for medical costs, primarily related to the Foley Nursing home, said Richard Tortora, president of Capital Markets Advisors, the county's financial adviser.

The $722.65, part of a debt payment of over $1 million, was the portion of the payment from the HEAL grants. The $17 million is being held in an escrow account at M&T.

"M&T for reasons we can't fathom just blew it: 'Oops it wasn't in our system, we missed it'", said Tortora, president of Capital Markets Advisors. Tortora said missing the payment and having to make a regulatory filing with the Municipal Securities Rulemaking Board was frustrating after months spent putting the arrangement together for the county.

M&T Bank was not immediately available for comment.

Fitch Ratings, the credit ratings agency, downgraded Suffolk County's general obligation bond rating to A from A-plus last month, affecting about $1.4 billion of debt. General obligation bonds have the full faith and credit of the issuer and are the best gauge of how risky investors think the county is.

Fitch said it had concerns about the county's ability to become financially stable, let alone reduce its big deficit.

(This story was corrected to fix name of Suffolk County's financial advisers)

(Reporting by Edward Krudy, additional reporting by Pam Niimi; Editing by Kenneth Barry)

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LOS ANGELES (Reuters) - Reality TV star Khloe Kardashian will not be returning to "The X Factor" after just one season as co-host of the TV talent show.

Fox television on Monday announced that presenter and actor Mario Lopez would return for a second season but the statement made no mention of Kardashian.

An "X Factor" spokesman said Kardashian, 28, who with her California socialite sisters Kim and Kourtney rose to fame in "Keeping Up With the Kardashians," would not be returning when the U.S. version of the singing competition returns in September.

"We really enjoyed working with her and wish her all the best in the future," the spokesman said.

Kardashian, one of the most popular faces on U.S. television, was brought in by "X Factor" creator Simon Cowell last year as part of a revamp that included the hiring of singers Britney Spears and Demi Lovato as judges after a disappointing first season in 2011.

A source close to the show said Kardashian, who had no previous experience as a TV host, was not asked to renew her contract.

Spears quit after one season and her replacement has yet to be named but Lovato will be back in September.

Kardashian married basketball player Lamar Odom in 2009, and the pair got their own spinoff show. She has more than 8 million followers on Twitter and has been in the news for several months over the couple's efforts to have a baby.

Lopez, a former actor, is the co-host of entertainment magazine show "Extra" and radio show "On with Mario Lopez." He is also an author of several fitness books.

"I'm thrilled Mario is back for Season Three of 'The X Factor,'" Cowell said in a statement. "Hosting a live show and keeping the judges - especially Demi - in line, is not an easy job, but Mario is a pro and we are glad he's coming back."

Fox is a unit of News Corp

(Reporting By Jill Serjeant; Editing by Kenneth Barry)

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NEW DELHI (AP) "Life of Pi" actor Suraj Sharma credits director Ang Lee with setting him on a path to continue with a career in movies.

Sharma told The Times of India in an interview published Tuesday that getting to work with the Oscar-winning director on "Life of Pi" was a blessing.

"The amount I learned and did was awesome. Ang gave me a path. Before that, I didn't even know what I would do in life," he was quoted as saying. After making the movie, "I know I want to tell stories," he said.

"I don't know whether I just want to act or be behind the camera, holding the camera or just being the boom director. But I want to be on the sets. It has to be something to do with cinema," he said.

Sharma, 20, said his next Hollywood film will be "Million Dollar Arm." The film revolves around a real-life reality show that searched for potential Major League Baseball pitchers among Indian cricketers.

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LONDON (Reuters) - Prince Harry, Britain's third in line to the throne, will take part in a race to the South Pole alongside wounded British servicemen and women, he announced on Friday.

The 208-mile (335-km) trek to the South Pole will see Britain's Royal compete against teams from the United States and Commonwealth countries.

"As a member of the British team, I will have a brew (tea) on ready for you when you join us at the Pole," he said in a speech, referring to participants from other countries.

Harry took part in a 2011 expedition to the North Pole organized by the same charity. Describing qualities he said he admired in his fellow participants, he said: "Physical strength, endurance, a sense of comradeship, absolutely.

"But there's something else, something deeper than that. Something that continues to draw me back to this charity and these people time and again - and always will."

(Reporting By Costas Pitas; Editing by Maria Golovnina)

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SEOUL (Reuters) - LG Display Co Ltd reported its smallest profit since it returned to the black in the second quarter of last year, as demand for iPhone and iPad screens from Apple weakened amid concerns the U.S. company is losing its luster in the mobile device market.

Apple Inc, which analysts say provides about 30 percent of LG Display's revenue, is facing intensifying competition from Samsung and up-and-coming rivals. A disappointing forecast by a U.S. supplier to Apple last week heightened fears about slowing demand for the iPhone and iPad, pushing shares of Asian suppliers including LG Display sharply lower.

LG Display, which vies with Samsung Electronics Co Ltd's panel unit for the top position in LCD flat screens globally, made 151 billion won ($135 million) in operating profit in its January-March first quarter. That compared with the average forecast of a 147 billion won profit in a Thomson Reuters poll of analysts.

It was the South Korean company's fourth straight quarterly profit after seven straight quarters of losses, as makers of liquid crystal display panels have since curtailed output after about two years of oversupply.

The result was also a sharp improvement from a loss of 211 billion won a year earlier. But it was down 74 percent from the previous quarter, hurt by a seasonal slowdown in demand and by weaker sales to Apple, which is scheduled to report quarterly results on Tuesday.

Sales of tablet and smartphone panels, which are largely bought by Apple, accounted for 27 percent of LG Display's total screen shipments in the first quarter, down from 31 percent in the fourth quarter.

Jay Yoo, an analyst at Korea Investment & Securities, estimated before the results announcement that LG Display's panel shipments for the iPhone 5 and the latest iPad had fallen 42 percent and 66 percent, respectively, from the prior quarter as Apple struggles with slowing sales growth.

On Tuesday, Apple is expected to report just an 8 percent increase in revenue for its fiscal second quarter, among the weakest showings in years, according to analysts' estimates.

Still, analysts see earnings for LG Display improving in the coming quarters as Apple is expected to introduce upgraded products later this year, and as demand for mobile device screens from affiliate LG Electronics Inc increases.

Samsung Securities analyst Harrison Cho expects Apple to introduce a less costly iPhone around July, helping LG Display improve its sales to Apple from June when initial parts shipments are expected to begin.

LG Display said on Monday that it expects panel shipments will rise by 5 percent to 10 percent in the second quarter from the previous quarter.

Shares in LG Display have fallen about 3 percent in the year to date, compared with a roughly 5 percent drop in the benchmark KOSPI index. The stock closed 2.2 percent higher prior to the results announcement.

(Reporting by Miyoung Kim; Editing by Chris Gallagher)

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