Vistaprint 2008 Annual Report Download - page 30

expansion strategy, we expect that we will selectively pursue acquisitions of businesses, technologies
or services in order to expand our capabilities, enter new markets, or increase our market share. We
do not have any experience making acquisitions. Integrating any newly acquired businesses,
technologies or services is likely to be expensive and time consuming. To finance any acquisitions, it
may be necessary for us to raise additional funds through public or private financings. Additional funds
may not be available on terms that are favorable to us, or at all, and, in the case of equity financings,
would result in dilution to our shareholders and, in the case of debt financings, may subject us to
covenants restricting the activities we may undertake in the future. If we do complete any acquisitions,
we may be unable to operate the acquired businesses profitably or otherwise implement our strategy
successfully. If we are unable to integrate any newly acquired businesses, technologies or services
effectively, our business and results of operations could suffer. The time and expense associated with
finding suitable and compatible businesses, technologies or services to acquire could also disrupt our
ongoing business and divert our management’s attention. Future acquisitions by us could also result in
large and immediate write-offs or assumptions of debt and contingent liabilities, any of which could
substantially harm our business and results of operations.
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 Chairman, President and Chief Executive Officer, Janet Holian, our President of VistaPrint Europe,
Wendy Cebula, our President of VistaPrint North America and Michael Giannetto, Senior Vice
President of Finance who will be Chief Financial Officer effective September 2, 2008. None of these
executives are 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 or other key
employees may significantly delay or prevent the achievement of our business objectives. 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 expected 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 over 1,450 permanent employees and over 140 temporary employees
as of June 30, 2008. As of June 30, 2008, we have website operations, offices, marketing,
manufacturing research and development and production facilities and customer support centers in
Bermuda, the United States, the Netherlands, Spain, Jamaica, Switzerland, and Canada. Our 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
anticipated growth will require us to continue to refine our operational, financial and management
controls, human resource policies, reporting systems and procedures in the locations in which we
operate. We expect the number of countries and offices from which we operate to continue to increase
in the future.
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 expected 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.
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