Memory maker SanDisk threatened by Satyam fallout

In one of the first public demonstrations of the knock-on effect of Satyam’s corruption scandal on its customers, memory component manufacturer SanDisk has revealed that its business performance has been adversely impacted as a direct result.

"Our current system integrator, Satyam Computer Services is experiencing financial difficulty which has resulted in some project delays and loss of productivity," the company said in its annual financial report.

SanDisk is in the middle of an enterprise resource planning (ERP) implementation in partnership with Satyam, and the Indian IT services company’s uncertain future threatens the success of that project.

"Any design flaws or delays in the new ERP system or any distraction of workforce from competing business requirements could harm our business or results of operations," the company said.

However, the frustration of Satyam’s customers seeking resolution of the company’s difficulties in the form of an acquisition may be relieved soon. The Indian government, which effectively owns the company at the moment, revealed ealier this week that it expects to have the company ready for sales within ten to 15 days.

In the meantime, the list of rumoured potential suitors has grown to include IBM and, illogically, Oracle.

Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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