Vistaprint 2008 Annual Report Download - page 53

recorded at their fair values. Certain forms of contingent consideration and certain acquired
contingencies will also be recorded at fair value at the acquisition date. SFAS 141(R) also requires
acquisition costs be expensed as incurred and restructuring costs will be expensed in periods after the
acquisition date in accordance with the requirements of FASB Statement 146, Accounting for Costs of
Exit or Disposal Activities. SFAS 141(R) is effective for financial statements issued for fiscal years
beginning after December 15, 2008. Earlier adoption is prohibited. We do not believe that the adoption
of this standard will have a material impact on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated
Financial Statements-an amendment of Accounting Research Bulletin No. 51 (“SFAS 160”). SFAS 160
requires a company to clearly identify and present ownership interests in subsidiaries held by parties
other than the company in the consolidated financial statements within the equity section but separate
from the company’s equity. It also requires the amount of consolidated net income attributable to the
parent and to the noncontrolling interest be clearly identified and presented on the face of the
consolidated statement of income; changes in ownership interest be accounted for similarly, as equity
transactions; and when a subsidiary is deconsolidated, any retained noncontrolling equity investment in
the former subsidiary and the gain or loss on the deconsolidation of the subsidiary be measured at fair
value. SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on
or after December 15, 2008. Earlier adoption is prohibited. We do not believe that the adoption of this
standard will have a material impact on our consolidated financial statements.
Results of Operations
The following table presents our historical operating results for the periods indicated as a
percentage of revenue:
Year Ended June 30,
2008 2007 2006
As a percentage of revenue:
Revenue ................................................................ 100.0%100.0%100.0%
Cost of revenue .......................................................... 38.5% 35.2% 32.8%
Technology and development expense ..................................... 11.2% 10.6% 10.3%
Marketing and selling expense............................................. 31.9% 34.3% 33.6%
General and administrative expense ....................................... 8.1% 9.3% 10.9%
Income from operations................................................... 10.3% 10.6% 12.4%
Interest income .......................................................... 1.0% 1.8% 1.9%
Other income (expense), net .............................................. 0.1% 0.0% (0.3)%
Interest expense ......................................................... 0.4% 0.7% 0.8%
Income before income taxes .............................................. 11.0% 11.7% 13.2%
Income tax provision...................................................... 1.1% 1.1% 0.5%
Net income .............................................................. 9.9% 10.6% 12.7%
Fiscal Years Ended June 30, 2008, 2007 and 2006
In thousands
Year Ended June 30, 2007-2008
% Change
2006-2007
% Change2008 2007 2006
Revenue ............................... $400,657 $255,933 $152,149 57% 68%
Cost of revenue ........................ $154,122 $ 89,971 $ 49,858 71% 80%
% of revenue............................ 38.5% 35.2% 32.8%
Form 10-K
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