Vistaprint 2012 Annual Report Download - page 21

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17
who also seek to establish strong brands. To promote our brands, we have incurred and will continue to incur
substantial expenses related to advertising and other marketing efforts, but we cannot be sure that these
investments will be profitable. If we are unable to successfully promote our brands, we may fail to attract new
customers, maintain customer relationships, and increase our revenues.
A component of our brand promotion strategy is establishing a relationship of trust with our customers by
providing a high-quality customer experience, which requires us to invest substantial amounts of resources in our
website development, design and technology, graphic design operations, production operations, and customer
service operations. Our ability to provide a high-quality customer experience is also dependent on external factors
over which we may have little or no control, including the reliability and performance of our suppliers, third-party
carriers and communication infrastructure providers. If we are unable to provide customers with a high-quality
customer experience for any reason, our reputation and brands would be harmed.
Our quarterly financial results will often fluctuate, which may lead to volatility in our share price.
Our revenues and operating results often vary significantly from quarter-to-quarter due to a number of
factors, some of which are inherent in our business strategies but many of which are outside of our control. We
target annual, rather than quarterly, EPS objectives, which can lead to fluctuations in our quarterly results. Other
factors that could cause our quarterly revenue and operating results to fluctuate or result in earnings that are lower
than our guidance, or both, include among others:
• seasonality-driven or other variations in the demand for our products and services;
• currency fluctuations, which affect our revenues and costs;
• our ability to attract visitors to our websites and convert those visitors into customers;
• our ability to retain customers and generate repeat purchases;
• business and home and family preferences for our products and services;
• shifts in product mix toward less profitable products;
• our ability to manage our production, fulfillment and support operations;
• costs to produce and deliver our products and provide our services, including the effects of inflation;
• our pricing and marketing strategies and those of our competitors;
• investments in our business to generate or support revenues and operations in future periods, such as
incurring marketing, engineering or consulting expenses in a current period for revenue growth or
support in future periods;
• compensation expense and charges related to agreements entered into with our executives and
employees;
• costs and charges resulting from litigation;
• a significant increase in credits, beyond our estimated allowances, for customers who are not satisfied
with our products;
• changes in our income tax rate;
• costs to acquire businesses or integrate acquired businesses, such as our costs relating to the
acquisitions of Albumprinter and Webs; and
Form 10-K