Vistaprint 2009 Annual Report Download - page 33

products and services from us. Despite any contractual protections we may have, these third party
providers can disable or revoke, and in the past have disabled or revoked, our security certificates
without our consent, which would render our websites inaccessible to some of our customers and
could discourage other customers from accessing our sites unless we are able to procure a
replacement certificate from one of a limited number of alternative third party providers. Any
interruption in our customers’ ability or willingness to access our websites in the event our security
certificates are disabled or otherwise unavailable for an extended period of time could result in a
material loss of revenue and profits and damage to our brand.
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. Any of the foregoing would have an adverse effect on our
business and results of operations.
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 both inside and 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
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,
Form 10-K
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