Vistaprint 2011 Annual Report Download - page 28

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Form 10-K
Our customers create products that incorporate images, illustrations and fonts that 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 that we use under license agreements. If one or
more of these licenses were terminated, the amount and variety of content available on our websites
would be significantly reduced. In such an event, we could experience delays in obtaining and
introducing substitute content, which might be available only under less favorable terms, or may not
be available at all. The termination of one or more of these licenses covering a significant amount of
content could have an adverse effect on our business and results of operations.
The loss of key personnel or an inability to attract and retain additional personnel could affect
our ability to successfully grow our business.
We are highly dependent upon the continued service and performance of our senior
management team and key technical, marketing and production personnel, and any of our executives
may cease their employment with us at any time with minimal advance notice. The loss of one or
more of our key employees may significantly delay or prevent the achievement of our business
objectives. We face intense competition for qualified individuals from numerous technology, marketing,
financial services, manufacturing and e-commerce companies. We may be unable to attract and retain
suitably qualified individuals, and our failure to do so could have an adverse effect on our ability to
implement our business plan.
Acquisitions may be disruptive to our business.
Our business and our customer base have been built primarily through organic growth, and
while our Supervisory Board and management team have experience making acquisitions, we have
limited experience making acquisitions as a company. However, a component of our strategy is to
selectively pursue acquisitions of businesses, technologies or services in order to expand our
capabilities, enter new markets, or increase our market share. Integrating any newly acquired
businesses, technologies or services may be complex, expensive and time consuming and we may
not be able to retain key employees of acquired businesses. In addition, acquisitions may lead to
reduced earnings if the transaction is dilutive for one or multiple years. 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. If we were to raise funds
through an equity financing, such a financing would result in dilution to our shareholders. If we were to
raise funds through a debt financing, such a financing may subject us to covenants restricting the
activities we may undertake in the future. We may be unable to operate any acquired businesses
profitably or otherwise implement our strategy successfully. If we are unable to integrate newly
acquired businesses, technologies or services effectively, our business and results of operations could
suffer. The time and expense associated with finding suitable and compatible businesses,
technologies or services to acquire could also disrupt our ongoing business and divert our
management’s attention. Acquisitions could also result in large and immediate write-offs or
assumptions of debt and contingent liabilities, any of which could substantially harm our business and
results of operations.
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.
Despite recent signs of economic recovery in some markets, many of the markets in which we
operate are still in an economic downturn that we believe has had and will continue to have a negative
impact on our business. Turmoil in the world’s financial markets materially and adversely impacted the
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