Global leader in flash memory card manufacturing, SanDisk issued a warning to its investors that the current turmoil at Indian IT major, Satyam will eventually lead to delay in execution of its Enterprise Resource Planning (ERP) system. Satyam is the system integrator for the project.

"Our current system integrator, Satyam Computer Services is experiencing financial difficulty which has resulted in some project delays and loss of productivity," said SanDIsk in a filing to the Securities Exchange Commission (SEC).

SanDisk had placed order for a new ERP system to be implemented by Satyam. SanDisk today said that the delay will mean it will have to use the older ERP system.

The SanDisk warning also cautioned that the project will be delayed further if Satyam files for bankruptcy or key personnel of the company leave the project. SanDisk said that these may lead to increase in project cost.

"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," said SanDisk.

SanDisk said that the company has experienced and might again experience rapid growth or changes in business requirements, which could place a significant strain on its managerial, financial and operations resources and personnel.