The world's largest supplier of flash memory cards, SanDisk, is facing problems like project delays and productivity loss owing to the current crisis at distressed IT firm Satyam [Get Quote].

In its annual report filed with the US Securities and Exchange Commission for 2008, Nasdaq-listed SanDisk has stated it is facing risks due to the situation at Satyam, which is the system integrator for installing a new ERP system for the memory disk maker.

SanDisk has warned investors that the design and implementation of the new Enterprise Resource Planning (ERP) system at the firm could take longer than anticipated and put further strain on its ability to run business on the older existing ERP system.

". . . our current system integrator, Satyam Computer Services  is experiencing financial difficulty which has resulted in some project delays and loss of productivity," SanDisk said in its 10-K filing to the Securities Exchange Commission (SEC).

The memory cards maker further said that if Satyam is to lose key personnel, declare bankruptcy or unable to perform at the expected level, SanDisk would have to engage a new integrator, which would likely result in significant delays in implementation and additional cost.