Vistaprint 2006 Annual Report Download - page 26

Table of Contents
Interruptions to our websites, information technology systems, production processes or customer service operations as a result of
natural disasters, errors in our technology, capacity constraints, security breaches or other causes could damage our reputation and
brand and substantially harm our business and results of operations.
The satisfactory performance, reliability and availability of our websites, transaction processing systems, network infrastructure, printing
production facilities and customer service operations are critical to our reputation, and our ability to attract and retain customers and to maintain
adequate customer service levels. Any future interruptions that result in the unavailability of our websites, reduced order fulfillment performance or
customer service operations could result in negative publicity, damage our reputation and brand and cause our business and results of operations
to suffer. We may also experience temporary interruptions in our business operations for a variety of other reasons in the future, including human
error, software errors, power loss, telecommunication failures, fire, flood, extreme weather, political instability, acts of terrorism, war, break−ins and
other events beyond our control. In particular, both Bermuda, where substantially all of the computer hardware necessary to operate our websites
is located in a single facility, and Jamaica, the location of most of our customer service and design service operations, are subject to a high degree
of hurricane risk and extreme weather conditions that could have a devastating impact on our facilities and operations.
Our technology, infrastructure and processes may contain undetected errors or design faults. These errors or design faults may cause our
websites to fail and result in loss of, or delay in, market acceptance of our products and services. In the past, we have experienced delays in
website releases and customer dissatisfaction during the period required to correct errors and design faults in our websites that caused us to lose
revenue. In the future, we may encounter additional issues, such as scalability limitations, in current or future technology releases. A delay in the
commercial release of any future version of our technology, infrastructure and processes could seriously harm our business. In addition, our
systems could suffer computer viruses and similar disruptions, which could lead to loss of critical data or the unauthorized disclosure of
confidential customer data.
Our business requires that we have adequate capacity in our computer systems to cope with the high volume of visits to our websites,
particularly during promotional campaign periods. As our operations grow in size and scope, we will need to improve and upgrade our computer
systems and network infrastructure to offer customers enhanced and new products, services, capacity, features and functionality. The expansion
of our systems and infrastructure may require us to commit substantial financial, operational and technical resources before the volume of our
business increases, with no assurance that our revenues will increase.
Any failure of our printing production equipment may prevent the production of orders and interfere with our ability to fulfill orders.
Substantially all of our production operations are performed in two facilities: our Dutch printing facility serving European and Asia−Pacific markets
and our Windsor, Ontario facility serving North American markets.
We do not presently have redundant systems in multiple locations or a formal disaster recovery plan. In addition, we are dependent in part
on third parties for the implementation and maintenance of certain aspects of our communications and printing systems, and because many of the
causes of system interruptions or interruptions of the production process may be outside of our control, we may not be able to remedy such
interruptions in a timely manner, or at all. We do carry business interruption insurance to compensate us for losses that may occur in the event
operations at facilities are interrupted, but these policies do not address all potential causes of business interruptions we may experience and any
proceeds we may receive may not fully compensate us for all of the revenue we may lose.
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