Vistaprint 2007 Annual Report Download - page 26

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personnel costs, are relatively fixed. We may be unable to adjust spending quickly enough to offset any
unexpected revenue shortfall. Accordingly, any shortfall in revenue may cause significant variation in
operating results in any quarter.
Based on the factors cited above, we believe that quarter-to-quarter comparisons of our operating
results may not be a good indication of our future performance. It is possible that in one or more future
quarters, our operating results may be below the expectations of public market analysts and investors.
In that event, the trading price of our common shares may fall.
The graphic design and printing markets are intensely competitive and we may be
unsuccessful in competing against current and future competitors, which could result in price
reductions and/or decreased demand for our products.
The printing and graphic design industries are intensely competitive, with many existing and
potential competitors, and we expect competition for online graphic design services and printed
products to increase in the future. Competition may result in price pressure, reduced profit margins and
loss of market share, any of which could substantially harm our business and results of operations. The
graphic design and printed product markets traditionally are highly fragmented and geographically
dispersed. The increased use of the Internet for online commerce and other technical advances have
allowed traditional providers of graphic design services and printed products to improve the quality of
their products and services, produce those products and deliver those services more efficiently and
reach a broader purchasing public. Current and potential competitors include:
‰self-service desktop design and publishing using a combination of (1) software such as
Microsoft Publisher, Microsoft Word and Broderbund PrintShop; (2) desktop printers or copiers
and (3) specialty paper supplies;
‰traditional printing and graphic design companies;
‰providers of technologies, such as websites, e-mail and electronic files, which may act as a
substitute for printed materials;
‰office supplies and photocopy companies such as Office Depot, FedEx Kinko’s, and Staples;
‰wholesale printers such as Taylor Corporation and Business Cards Tomorrow International;
and
‰other online printing and graphic design companies.
Many of our current and potential competitors have advantages over us, including longer
operating histories, greater brand recognition, existing customer and supplier relationships, and
significantly greater financial, marketing and other resources. Many of our competitors work together.
For example, Taylor Corporation and Business Cards Tomorrow International sell printed products
through office superstores such as Staples and Office Depot.
Some of our competitors who either already have an online presence or are seeking to establish
an online presence may be able to devote substantially more resources to website and systems
development than we can. In addition, larger, more established and better capitalized entities may
acquire, invest or partner with traditional and online competitors as use of the Internet and other online
services increases. Competitors may also seek to develop new products, technologies or capabilities
that could render many of the products, services and content we offer obsolete or less competitive,
which could harm our business and results of operations.
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