Vistaprint 2008 Annual Report Download - page 29

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 design products and services 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 and services. 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 North America 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, such as co-branded or strategic partner-branded websites 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.
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. Key components of
our business strategy include, among others, expanding our customer base, targeting additional
markets and business opportunities, and expanding our product and service offerings. To execute our
Form 10-K
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