Vistaprint 2009 Annual Report Download - page 35

‰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;
‰interpretation of complex tax laws, treaties and regulations that could expose us to
unanticipated taxes on our income and increase our effective tax rate;
‰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.
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.
Our business and results of operations may be negatively impacted by general economic and
financial market conditions and such conditions may increase the other risks that affect our
business.
Most if not all of the markets in which we operate are currently in an economic recession that we
believe has had and will continue to have a negative impact on our business. Likewise the world’s
financial markets are currently experiencing significant turmoil, resulting in reductions in available
credit, dramatically increased costs of credit, increased volatility in security prices, rating downgrades
of investments and reduced valuations of securities generally. These events have materially and
adversely impacted the availability of financing to a wide variety of businesses, including small
businesses, and the resulting uncertainty has led to reductions in capital investments, overall spending
levels, future product plans, and sales projections across industries and markets. These trends could
have a material and adverse impact on the overall demand for our products and services and our
ability to achieve targeted financial results, as well as our overall financial results from operations. We
are unable to predict the likely duration and severity of the current disruption in financial markets and
recession in Europe, the U.S. and other countries, but the longer the duration the greater risks we face
in operating our business.
The United States government may substantially increase border controls and impose duties or
restrictions on cross-border commerce that may substantially harm our business.
For the fiscal year ended June 30, 2009, we derived 61% of our revenue from sales to customers
made through Vistaprint.com, our United States-focused website. We produce all physical products for
our United States customers at our facility in 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 imposes protectionist measures, such as customs duties and tariffs, that
limit free trade. Some of these measures may apply directly to product categories that comprise a
material portion of our revenues. The customs laws, rules and regulations that we are required to
Form 10-K
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