Vistaprint 2012 Annual Report Download - page 27

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distribution services. Blacklisting of this type could interfere with our ability to market our products and services,
communicate with our customers and otherwise operate our websites, and operate and manage our corporate
email accounts, all of which could have a material negative impact on our business and results of operations.
Our customers create products that incorporate images, illustrations and fonts that we license from third
parties, and any loss of the right to use these licensed materials may substantially harm our business and
results of operations.
Many of the images, illustrations, and fonts incorporated in the design products and services we offer are
the copyrighted property of other parties that we use under license agreements. If one or more of our licenses
covering a significant amount of content were terminated, the amount and variety of content available on our
websites would be significantly reduced, and we may not be able to find, license, and introduce substitute content in
a timely manner, on acceptable terms or at all.
The loss of key personnel or an inability to attract and retain additional personnel could affect our ability to
successfully grow our business.
We are highly dependent upon the continued service and performance of our senior management team and
key technical, marketing and production personnel, any of whom may cease their employment with us at any time
with minimal advance notice. The loss of one or more of our key employees may significantly delay or prevent the
achievement of our business objectives. We face intense competition for qualified individuals from numerous
technology, marketing, financial services, manufacturing and e-commerce companies. We may be unable to attract
and retain suitably qualified individuals, and our failure to do so could have an adverse effect on our ability to
implement our business plan.
Our new credit facility contains financial and operating restrictions and covenants that may limit our
access to additional credit and could negatively impact our liquidity.
Our credit facility imposes limitations on our ability to, among other things:
• incur additional indebtedness and liens outside of the credit facility;
• make certain investments, payments, or changes in our corporate structure;
• make capital expenditures in excess of certain limits; and
• purchase our ordinary shares.
In addition, we are required to meet certain financial covenants that are customary with this type of credit
facility, which are described in Note 8 “Long-Term Debt” in the accompanying notes to the condensed consolidated
financial statements included in Item 8 of Part II of this Report. If we are unable to comply with these covenants,
then we could default under the credit facility, which could cause us to be unable to borrow under the credit facility
and may result in the acceleration of the maturity of our outstanding indebtedness under the facility. If the maturities
were accelerated, we may not have sufficient funds available for repayment, and if we were unable to borrow
further under the facility, we may not be able to make investments in our business to support our strategy or we
may end up in bankruptcy proceedings, or other processes, in which our business would be negatively impacted. In
addition, our shareholders would be detrimentally impacted as shareholder value could decrease to a point of
limited return. Each scenario would result in significant negative implications to our liquidity 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.
Many of the markets in which we operate are still in an economic downturn that we believe may have a
negative impact on our business. Additionally, a significant portion of our revenues and costs come from Europe
where the volatility of the capital markets has continued to result in uncertainty for the outlook of the region and
Form 10-K