Vistaprint 2010 Annual Report Download - page 19

Form 10-K
those markets. We encounter competition from large retailers offering a wide breadth of products and
highly focused companies concentrated on a subset of our customers or product offerings.
Many of our current and potential competitors have longer operating histories, larger customer
bases, greater brand recognition and significantly greater financial, marketing and other resources
than we do. Our competitors may enter into strategic alliances to provide graphic design and
production services with larger, more established and well-financed companies, potentially at more
favorable terms than we could obtain. Additionally, these competitors have research and development
capabilities that may allow them to develop new or improved products and services that may compete
with the products and services that we market. New technologies and the expansion of existing
technologies, such as local search, e-mails, electronic files and social media which may serve as
substitutes for our products and services, may increase competitive pressures on us. Increased
competition may result in reduced operating margins as well as loss of market share and brand
recognition. We may be unable to compete successfully against current and future competitors, and
competitive pressures facing us could harm our business and prospects.
Business Segment and Geographic Information
We operate in one business segment: offering micro businesses and consumers a broad range
of brand identity and promotional products, customized products, marketing services and electronic
solutions. For the years ended June 30, 2010, 2009 and 2008, approximately 45%, 39%, and 38%,
respectively, of our total revenues were derived from our non-United States websites. No single
country other than the United States accounted for 10% or more of revenues in any of the years
ended June 30, 2010, 2009 and 2008. For more segment and geographic information, see our
consolidated financial statements and selected consolidated financial data included in this Annual
Report on Form 10-K, including Note 11 to such consolidated financial statements.
Seasonality
Our business has become increasingly seasonal in recent years due to increased sales of
products targeted to the consumer marketplace, such as holiday cards, calendars and personalized
gifts. Our second fiscal quarter, ending December 31, includes the majority of the holiday shopping
season and has become our strongest quarter for sales of our consumer-oriented products.
Government Regulation
We are not currently subject to direct national, federal, state, provincial or local regulation other
than regulations applicable to businesses generally or directly applicable to online commerce. The
adoption or modification of laws or regulations relating to the Internet or other areas of our business
could limit or otherwise adversely affect the manner in which we currently conduct our business. In
addition, the growth and development of the market for online commerce may lead to more stringent
consumer protection laws, which may impose additional burdens on us. If we are required to comply
with new regulations or legislation or new interpretations of existing regulations or legislation, this
compliance could cause us to incur additional expenses or alter our business model. We do not
currently provide individual personal information regarding our users to third parties without the user’s
permission.
Employees
As of June 30, 2010, we had approximately 2,200 full-time employees in our eleven locations
worldwide and approximately 170 temporary employees at our manufacturing facilities. As of June 30,
2010, our largest facilities in terms of employee count were in Canada, Jamaica, the Netherlands, and
the United States, each of which employed approximately 300 to 600 people. None of our employees
are represented by a labor union. We are required to provide certain employees in our Venlo facility
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