Vistaprint 2006 Annual Report Download - page 27

Table of Contents
The occurrence of any of the foregoing could substantially harm our business and results of operations.
Our customers create products that incorporate images, illustrations and fonts which we license from third parties, and any loss of the
right to use these licensed materials would substantially harm our business and results of operations.
Many of the images, illustrations, and fonts incorporated in the designs and products we offer are the copyrighted property of other parties
used by us under license agreements. If one or more of these licenses were to be terminated, the amount and variety of content available on our
websites would be significantly reduced. In such event, we could experience delays in obtaining and introducing substitute materials and substitute
materials might be available only under less favorable terms or at a higher cost, or may not be available at all.
If we are unable to develop, market and sell products and services beyond our existing target markets and develop new technology that
attracts a new customer base, our results of operations may suffer.
We have developed technologies and services and implemented marketing strategies designed to attract small business owners and
consumers to our websites and encourage them to purchase our products. While small business owners have been the source of our revenue
growth and the basis for the expansion of our business to date, we believe we will need to address additional markets to further grow our
business. To access new markets, including consumers outside the United States, we expect that we will need to develop, market and sell new
products and additional services that address their graphic design and printing needs. We may not be able to expand our graphic design services
or create new products and services, address any new markets or develop a broader customer base. Any failure to address additional market
opportunities could harm our business, financial condition and results of operations.
The development of our business since the launch of the VistaPrint.com website in April 2000 has been attributable to organic growth,
but in the future we may choose to undertake acquisitions to further expand our business, which may pose risks to our business and
dilute the ownership of our existing shareholders.
Our business and our customer base have been built through organic growth. A key component of our business strategy includes
strengthening our competitive position and refining the customer experience on our websites. To execute our expansion strategy, we expect that
we will selectively pursue acquisitions of businesses, technologies or services in order to expand our capabilities, enter new markets, or increase
our market share. We do not have any experience making acquisitions. Integrating any newly acquired businesses, technologies or services is
likely to 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, and, in the case of equity financings, would result in
dilution to our shareholders and, in the case of debt financings, may subject us to covenants restricting the activities we undertake in the future. If
we do complete any acquisitions, we may be unable to operate the acquired businesses profitably or otherwise implement our strategy
successfully. If we are unable to integrate any 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 could also
disrupt our ongoing business and divert our management’s attention. Future acquisitions by us 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.
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