Nvidia Corp., the worlds largest supplier of graphics processing units, has issued a warning regarding lower sales during the ongoing quarter. The company blamed issues with its chipsets as well as low prices of graphics processing units for its fiscal results.
According to Nvidia, second quarter revenue and gross margin are expected to be lower than guidance provided during its first quarter financial conference call and be from $875 million to $950 million. The company said that the estimated decrease in revenue and gross margin is due to several reasons, including the delayed ramp of a next generation core-logic set, price adjustments of the graphics processors to respond to competitive products as well as "end-market weakness around the world".
This is the first time in years when Nvidia admitted that it has to lower pricing of its graphics processing units to respond to a relatively successful product launch of its main rival, ATI, graphics product group of Advanced Micro Devices.