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3
PART I
Item 1. Business
This Annual Report on Form 10-K and the documents that we incorporate by reference in this report contain
“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of
our management and information currently available to our management. Use of words such as “believes,”
“expects,” “anticipates,” “intends,” “plans,” “estimates,” “goal,” “should,” “likely” or similar expressions, indicate a
forward-looking statement. While we may elect to update these forward-looking statements, we specifically disclaim
any obligation to do so, even if our expectations change. Important factors that could cause actual results to differ
materially from the forward-looking statements include, but are not limited to, those set forth under the heading
“Risk Factors.”
Overview
We are a leading online provider of coordinated portfolios of customized marketing products and services to
micro businesses worldwide. We offer a broad spectrum of brand identity and promotional products, marketing
services and digital solutions. Our product offerings range from business cards, brochures and post cards to
customized apparel, invitations and announcements, holiday cards, calendars, direct mail services, promotional
gifts, signage, website design and hosting services, and online marketing and creative services. While we focus
primarily on micro business marketing products and services, consumers also purchase many of our products, such
as invitations and announcements, greeting cards, photo books and calendars.
We offer value to our customers through innovative technology, a broad selection of customized products
and services, low pricing and personalized customer service. While we offer a broad selection of designs and
formats, we seek to reduce manufacturing complexity and costs by using limited characteristics that can be
reconfigured and combined. This reduces our costs versus comparable marketing of products and services
produced using traditional methods. This approach has allowed us to successfully penetrate the large, fragmented
and geographically dispersed micro business and home and family markets.
We have standardized, automated and integrated the design and production process, from design
conceptualization to product shipment and service delivery. Customers can use our proprietary design software to
easily create and order full-color, personalized, professional-looking marketing physical and digital products and
services, without any prior design training or experience. Customers have access to extensive graphic designs,
design templates, photographs and illustrations as well as logo design services and content suggestions. We are
also able to automatically match and adapt graphic content from one product format to another, which allows us to
generate and display complementary products and services as part of the ordering process.
Our proprietary Internet-based order processing systems receive and store tens of thousands of individual
orders on a daily basis and, using complex algorithms, organize these orders for efficient production and delivery to
our customers. Through our production technologies and highly automated manufacturing facilities, we are able to
significantly reduce the costs and inefficiencies associated with traditional production and can provide customized
finished products in as little as two days from design to delivery. During the fiscal year ended June 30, 2012, our
customers placed approximately 27.7 million orders.
Our total revenues have grown from $6.1 million for the fiscal year ended June 30, 2001 to $1.0 billion for
the fiscal year ended June 30, 2012. The substantial majority of our revenue growth has been organic.
Market and Industry Background
The Marketplace for Micro Business Marketing Products and Services
We focus on providing marketing products and services for the micro business market, generally
businesses or organizations with fewer than 10 employees and usually 2 or fewer. We believe that there are
approximately 60 million businesses with fewer than 10 employees in the United States, Canada, and the European
Form 10-K