The Hindu Business Line : Satyam crisis might hit our biz: SanDisk

SanDisk Corporation, the US-based flash storage company, has said the developments at Satyam might result in significant delays in ERP implementation and additional costs to the company.

Submitting its annual report to the United States Securities Exchange for the year ended December 2008, the company pointed out that the Indian IT company was experiencing financial difficulties which had resulted in some project delays and loss of productivity.

“If the system integrator (Satyam) were to lose key personnel, declare bankruptcy or otherwise be unable to perform at the level we expect, we would have to engage a new integrator, which would likely result in significant delays in our implementation and additional cost,” it said in the column ‘Risk Factors’.

The company was planning to implement the enterprise resource planning system in fiscal year 2009. “This project requires significant investment, the re-engineering of many processes used to run our business, and the attention of many employees and managers who would otherwise be focused on other aspects of our business,” it pointed out.

Asked for comments on SanDisk observations, a Satyam spokesperson said the company would not comment on individual clients.

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