Vistaprint 2011 Annual Report Download - page 22
Download and view the complete annual report
Please find page 22 of the 2011 Vistaprint annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12 -
13 -
14 -
15 -
16 -
17 -
18 -
19 -
20 -
21 -
22 -
23 -
24 -
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
 |
 |
Form 10-K
outside of our control. We target annual, rather than quarterly, EPS objectives, which can lead to
fluctuations in our quarterly results. Other factors that could cause our quarterly revenue and
operating results to fluctuate or result in earnings that are lower than our guidance, or both, include
among others:
• seasonality-driven or other variations in the demand for our products and services;
• currency fluctuations, which affect our revenues and costs;
• our ability to attract visitors to our websites and convert those visitors into customers;
• our ability to retain customers and generate repeat purchases;
• business and consumer preferences for our products and services;
• shifts in product mix toward less profitable products;
• our ability to manage our production and fulfillment operations;
• costs to produce and deliver our products and provide our services, including the effects of
inflation;
• our pricing and marketing strategies and those of our competitors;
• investments in our business to generate or support revenues and operations in future
periods, such as marketing, engineering or consulting spend in a current period for revenue
growth or support in future periods;
• market and industry perception of our success, or lack thereof, in pursuing our long-term
growth strategy;
• improvements in the quality, cost and convenience of desktop printing;
• compensation expense and charges related to agreements entered into with our executives
and employees;
• costs and charges resulting from litigation; and
• a significant increase in credits, beyond our estimated allowances, for customers who are
not satisfied with our products.
We base our operating expense budgets in part on expected revenue trends. A portion of our
expenses, such as office leases, depreciation and personnel costs, are relatively fixed, and we may
be unable to adjust spending quickly enough to offset any revenue shortfall. Accordingly, any shortfall
in revenue may cause significant variation in operating results in any quarter. Based on the factors
cited above, among others, we believe that quarter-to-quarter comparisons of our operating results
may not be a good indication of our future performance. Our operating results may sometimes be
below the expectations of public market analysts and investors, in which case the price of our ordinary
shares will likely fall.
Seasonal fluctuations in our business place a strain on our operations and resources.
Our second fiscal quarter includes the majority of the holiday shopping season and in each of
the last three fiscal years has accounted for more of our revenue and earnings than any other quarter,
primarily due to higher sales of home and family products such as holiday cards, calendars and
personalized gifts. We believe our second fiscal quarter is likely to continue to account for a
19