Vistaprint 2008 Annual Report Download - page 25

Our quarterly financial results may fluctuate which may lead to volatility in our share price.
Our future revenues and operating results may vary significantly from quarter-to-quarter due to a
number of factors, many of which are outside of our control. Factors that could cause our quarterly
revenue and operating results to fluctuate include, among others:
‰seasonality-driven or other variations in the demand for our services and products;
‰our ability to attract visitors to our websites and convert those visitors into customers;
‰our ability to retain customers and encourage repeat purchases;
‰business and consumer preferences for our products and services;
‰shifts in product mix toward lower gross margin products;
‰investment decisions by management made in relation to our performance against targeted
earnings per share levels;
‰our ability to manage our production and fulfillment operations;
‰currency fluctuations, which affect not only our revenues but also our costs;
‰the costs to produce our products and to provide our services;
‰our pricing and marketing strategies and those of our competitors;
‰improvements to the quality, cost and convenience of desktop printing;
‰costs of expanding or enhancing our technology or websites;
‰compensation expense and charges related to our awarding of share-based compensation;
and
‰a significant increase in credits, beyond our estimated allowances, for customers who are not
satisfied with our products.
In addition, management investment decisions may lead to fluctuations in our quarterly financial
results. We base our operating expense budgets in part on expected revenue trends. A portion of our
expenses, such as office leases and various personnel costs, are relatively fixed. We may be unable to
adjust spending quickly enough to offset any revenue shortfall. Accordingly, any shortfall in revenue
may cause significant variation in operating results in any quarter.
Based on the factors cited above, among others, 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 markets for small business marketing products and services and consumer custom
products 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 markets for small business marketing products and services and consumer custom products,
including the printing and graphic design market, are intensely competitive, with many existing and
potential competitors, and we expect competition for online small business marketing and consumer
custom products and services 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 markets for small business marketing products and services and for
consumer custom products traditionally are highly fragmented and geographically dispersed. The
Form 10-K
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