Vistaprint 2010 Annual Report Download - page 30

• protectionist laws and business practices that favor local producers and service providers;
• interpretation of complex tax laws, treaties and regulations that could expose us to
unanticipated taxes on our income and increase our effective tax rate;
• failure to properly understand and develop graphic design content and product formats
appropriate for local tastes;
• restrictions imposed by local labor practices and laws on our business and operations; and
• failure of local laws to provide a sufficient degree of protection against infringement of our
intellectual property.
Our international operations may not be successful if we are unable to meet and overcome
these challenges, which could limit the growth of our business and may have an adverse effect on our
business and operating results.
Acquisitions may be disruptive to our business.
Our business and our customer base have been built primarily through organic growth. However,
from time to time we may selectively pursue acquisitions of businesses, technologies or services in
order to expand our capabilities, enter new markets, or increase our market share, such as our
acquisition of Soft Sight, Inc., or Soft Sight, in December 2009. We have very limited experience
making acquisitions. Integrating any newly acquired businesses, technologies or services may be
expensive and time consuming. To finance any acquisitions, it may be necessary for us to raise
additional funds through public or private financings. Additional funds may not be available on terms
that are favorable to us, or at all. If we were to raise funds through an equity financing, such a
financing would result in dilution to our shareholders. If we were to raise funds through a debt
financing, such a financing may subject us to covenants restricting the activities we may undertake in
the future. We may be unable to operate any acquired businesses profitably or otherwise implement
our strategy successfully. If we are unable to integrate newly acquired businesses, technologies or
services effectively, our business and results of operations could suffer. The time and expense
associated with finding suitable and compatible businesses, technologies or services to acquire could
also disrupt our ongoing business and divert our management’s attention. Acquisitions could also
result in large and immediate write-offs or assumptions of debt and contingent liabilities, any of which
could substantially harm our business and results of operations.
Our business and results of operations may be negatively impacted by general economic and
financial market conditions, and such conditions may increase the other risks that affect our
business.
Despite recent signs of economic recovery in some markets, many of the markets in which we
operate are still in an economic downturn that we believe has had and will continue to have a negative
impact on our business. Turmoil in the world’s financial markets materially and adversely impacted the
availability of financing to a wide variety of businesses, including micro businesses, and the resulting
uncertainty led to reductions in capital investments, marketing expenditures, overall spending levels,
future product plans, and sales projections across industries and markets. These trends could have a
material and adverse impact on the demand for our products and services and our financial results
from operations.
The United States government may substantially increase border controls and impose duties
or restrictions on cross-border commerce that may substantially harm our business.
For the fiscal year ended June 30, 2010, we derived 55% of our revenue from sales to
customers made through Vistaprint.com, our United States-focused website. We produce all physical
26