Vistaprint 2006 Annual Report Download - page 28

Table of Contents
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 including, in particular, Robert S. Keane, our President and Chief Executive Officer, Janet Holian, our Chief Marketing
Officer, and Alexander Schowtka, our Chief Operating Officer. None of Mr. Keane, Ms. Holian, or Mr. Schowtka is a party to an employment
agreement with VistaPrint, and therefore may cease their employment with us at any time with no advance notice. The loss of one or more of
these key employees may significantly delay or prevent the achievement of our business objectives. Although we have generally been successful
in our recruiting efforts to date, 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.
If we are unable to manage our growth and expand our operations successfully, our reputation would be damaged and our business
and results of operations would be harmed.
We have rapidly grown to approximately 695 employees as of June 30, 2006, with website operations, offices, production facilities and
customer support centers in Bermuda, the United States, the Netherlands, Jamaica and Canada. This growth, combined with the geographical
separation of our operations, has placed, and will continue to place, a strain on our administrative and operational infrastructure. Our ability to
manage our operations and growth will require us to continue to refine our operational, financial and management controls, human resource
policies, reporting systems and procedures in at least five countries.
We may not be able to implement improvements to our management information and control systems in an efficient or timely manner and
may discover deficiencies in existing systems and controls. If we are unable to manage future expansion, our ability to provide a high−quality
customer experience could be harmed, which would damage our reputation and brand and substantially harm our business and results of
operations.
The United States government may substantially increase border controls and impose restrictions on cross−border commerce that may
substantially harm our business.
For the fiscal year ended June 30, 2006, we derived 71% of our revenue from sales to customers made through our United States website.
We produce printed products for our United States customers at our Windsor, Ontario facility. Restrictions on shipping goods into the United
States from Canada pose a substantial risk to our business. Particularly since the terrorist attacks on September 11, 2001, the United States
government has substantially increased border surveillance and controls. We have from time to time experienced significant delays in bringing our
manufactured products into the United States as a result of these controls, which has, in some instances, resulted in delayed delivery of orders. If
the United States were to impose further border controls and restrictions, impose quotas, tariffs or import duties, increase the documentation
requirements applicable to cross border shipments or take other actions that have the effect of restricting the flow of goods from Canada to the
United States, we may have greater difficulty shipping products into the United States or be foreclosed from doing so, experience shipping delays,
or incur increased costs and expenses, all of which would substantially impair our ability to serve the United States market and harm our business
and results of operations.
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