Vistaprint 2011 Annual Report Download - page 24

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Form 10-K
If we are unable to manage the challenges associated with our global operations, the growth
of our business could be negatively impacted.
We operate production facilities or offices in 13 countries and have 24 localized websites to
serve various geographic markets. We are subject to a number of risks and challenges that
specifically relate to our international operations. These risks and challenges include, among others:
• 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;
• failure to comply with laws, treaties and regulations that could expose us to unanticipated
taxes, duties and other costs;
• failure to properly understand and develop graphic design content and product formats
appropriate for local tastes;
• disruptions caused by political and social instability that may occur in some countries;
• disruptions or cessation of important components of our international supply chain;
• 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.
We face risks related to interruption of our operations and lack of redundancy.
Our production facilities, websites, transaction processing systems, network infrastructure,
supply chain and customer service operations may be vulnerable to interruptions, and we do not have
redundancies in all cases to carry on these operations in the event of an interruption. Some of the
events that could cause interruptions in our operations or systems are, among others:
• human error, including but not limited to poor managerial judgment or oversight;
• fire, flood, earthquake, hurricane or other natural disaster or extreme weather;
• labor strike, work stoppage or other issue with our workforce;
• political instability or acts of terrorism or war;
• power loss or telecommunication failure;
• undetected errors or design faults in our technology, infrastructure and processes that may
cause our websites to fail; and
• inadequate capacity in our systems and infrastructure to cope with periods of high volume
and demand, particularly during promotional campaign periods and in the seasonal peak
we experience in our second fiscal quarter.
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