SAN FRANCISCO (07/31/2000) - Pandesic LLC, a joint venture between Intel Corp.
(INTC) and German software firm SAP AG, which helps companies build and run e-commerce sites, said Friday that it will shut down because it doesn't expect to turn a profit.
The company, based in Sunnyvale, Calif., is laying off its 400 employees, but said it is committed to helping its customers make a transition to new companies that can keep their Web sites running.
"I can assure you we're not going to turn off the switch on the server and go home," says Pandesic spokeswoman Paula Stout.
Both the company's president, Pete Wolcott, and CEO, Harold Hughes, resigned this week, citing personal reasons. Catherine Yetts, executive VP, has been named interim CEO.
Pandesic was formed in August 1997 by microprocessor king Intel and SAP, one of the world's biggest makers of business-management software. In addition to providing initial funding, Intel provided Pandesic with servers while SAP provided software.
The ill-fated venture was launched with great fanfare. When it opened for business, Intel President Craig Barrett said: "Intel and SAP excel at business-process expertise, global presence and logistical know-how. The combination of these capabilities give Pandesic the potential to make a significant impact on electronic commerce."
But it never did. Pandesic said it had more than 100 customers, including shoemaker Adidas, the San Francisco Giants baseball team and BigTray, a foodservice industry supplier.
Pandesic targeted companies that wanted to conduct thousands of e-commerce transactions per day, charging them between $500,000 and $2 million annually for the services they provided.
The company remained private, and its financials were not provided by Intel or SAP.
Pandesic has other offices in Folsom, Calif., San Francisco, New York, Miami, London and Tokyo.