Vistaprint 2008 Annual Report Download - page 31

If we are unable to manage the challenges associated with our international operations, the
growth of our business could be negatively impacted.
We have a limited history of managing operations in multiple countries. From 2001 to 2004, all of
our business was conducted from one facility located in the United States and from our website
operations in Bermuda. Since that time, we have expanded our business to include operations in
seven different countries. For example, we operate printing facilities in Venlo, the Netherlands and
Windsor, Ontario, Canada, a customer support, sales and service, and graphic design center in
Montego Bay, Jamaica, website operations in Devonshire, Bermuda, our European headquarters and
marketing office in Barcelona, Spain, a technology development facility in Winterthur, Switzerland, and
technology development, marketing, finance and administrative operations in Lexington,
Massachusetts, United States. We have localized websites to serve many additional international
markets. For the fiscal year ended June 30, 2008, we derived 38% of our revenue from our non-United
States websites. We are subject to a number of risks and challenges that specifically relate to our
international operations. These risks and challenges include, among others:
‰fluctuations in foreign currency exchange rates that may increase the United States dollar cost
of, or reduce United States dollar revenue from, our international operations;
‰difficulty managing operations in, and communications among, multiple locations and time
zones;
‰local regulations that may restrict or impair our ability to conduct our business as planned;
‰protectionist laws and business practices that favor local producers and service providers;
‰failure to properly understand and develop graphic design content and product formats
appropriate for local tastes;
‰restrictions imposed by local labor practices and laws on our business and operations; and
‰failure of local laws to provide a sufficient degree of protection against infringement of our
intellectual property.
We also have limited experience in confronting and addressing the risks and challenges we face
in operating in several countries. Our international operations may not be successful if we are unable
to meet and overcome these challenges, which could limit the growth of our business and may have an
adverse effect on our business and operating results.
The United States government may substantially increase border controls and impose
restrictions on cross-border commerce that may substantially harm our business.
For the fiscal year ended June 30, 2008, we derived 62% of our revenue from sales to customers
made through our United States website. We produce printed products for our United States customers
at our facility near Windsor, Ontario. Restrictions on shipping goods into the United States from
Canada pose a substantial risk to our business. Particularly since the terrorist attacks on
September 11, 2001, the United States government has substantially increased border surveillance
and controls. We have from time to time experienced significant delays in shipping our manufactured
products into the United States as a result of these controls, which has, in some instances, resulted in
delayed delivery of orders. The United States also has in the past imposed protectionist measures,
such as tariffs, that limit free trade. If the United States were to impose further border controls and
restrictions, impose quotas, tariffs or import duties, increase the documentation requirements
applicable to cross border shipments or take other actions that have the effect of restricting the flow of
goods from Canada to the United States, we may have greater difficulty shipping products into the
United States or be foreclosed from doing so, experience shipping delays, or incur increased costs and
expenses, all of which would substantially impair our ability to serve the United States market and
harm our business and results of operations.
Form 10-K
27