Vistaprint 2007 Annual Report Download - page 29

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 operational in multiple locations. 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.
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 may
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 market and sell products and services beyond our existing target markets
and develop new products and services to attract new customers, our results of operations
may suffer.
We have developed products and services and implemented marketing strategies designed to
attract small business owners and consumers to our websites and encourage them to purchase our
products. We believe we will need to address additional markets and attract new customers to further
grow our business. To access new markets and customers we expect that we will need to develop,
market and sell new products and additional services that address their needs. To access new
markets, we also intend to continue expansion of our marketing efforts and customer service outside of
the United States and to continue to introduce localized websites in different countries and languages.
In addition, we intend to focus on developing new strategic relationships to expand our marketing and
sales channels, including co-branded website and retail in-store offerings. Any failure to develop new
products and services, expand our business beyond our existing target markets and customers, and
address additional market opportunities, could harm our business, financial condition and results of
operations.
Form 10-K
25