Shutterfly 2009 Annual Report Download - page 23
Download and view the complete annual report
Please find page 23 of the 2009 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13 -
14 -
15 -
16 -
17 -
18 -
19 -
20 -
21 -
22 -
23 -
24 -
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33 -
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
 |
 |
Based on the factors cited above, we believe that quarter-to-
quarter comparisons of our operating results are not a good indication of our
future performance. It is possible that in one or more future quarters, our operating results may be below the expectations of public market
analysts and investors. In that event, the trading price of our common stock may decline.
We have incurred operating losses in the past and may not be able to sustain profitability in the future.
We have periodically experienced operating losses since our inception in 1999. In particular, we make investments in our business that
generally result in operating losses in each of the first three quarters of our fiscal year. This typically has enabled us to generate the majority of
our net revenue during the fourth quarter and to achieve profitability for the full fiscal year. If we are unable to produce our products and provide
our services at commercially reasonable costs, if customer demand and revenues decline or if our expenses exceed our expectations, we may not
be able to sustain or increase profitability on a quarterly or annual basis.
•
the costs of customer acquisition;
•
our ability to manage our production and fulfillment operations;
•
the costs to produce our prints and photo
-
based products and merchandise and to provide our services;
•
the costs of expanding or enhancing our technology or website;
•
a significant increase in returns and credits, beyond our estimated allowances, for customers who are not satisfied with our products;
•
declines or disruptions to the travel industry;
•
variations in weather, particularly heavy rain and snow which tend to depress travel and picture taking;
•
the timing of holidays;
•
volatility in our stock price, which may lead to higher stock
-
based compensation expense;
•
consumer preferences for digital photography services;
•
improvements to the quality, cost and convenience of desktop printing of digital pictures and products; and
•
macroeconomic and geopolitical events such as recession, inflation, war, threat of war or terrorist actions.
21