Vistaprint 2013 Annual Report Download - page 14

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and production and delivery speed. It is our intention to offer high quality design, production and marketing services
at low price points and in doing so, offer our customers an attractive value proposition. Our current competition
includes one or a combination of the following:
• traditional storefront printing and graphic design companies;
• office superstores, drug store chains, food retailers and other major retailers targeting small business and
consumer markets;
• wholesale printers;
• online printing and graphic design companies, many of which provide printed products and services similar
to ours;
• self-service desktop design and publishing using personal computer software with a laser or inkjet printer
and specialty paper;
• email marketing services companies;
• website design and hosting companies;
• suppliers of custom apparel, promotional products and customized gifts;
• online photo product companies;
• Internet firms and retailers; and
• other digital marketing such as social media, local search directories and other providers.
As we expand our geographic reach, product and service portfolio and customer base, our competition
increases. Our geographic expansion creates competition with competitors with a multi-national presence and
experienced local vendors. Recent product offerings such as websites, email marketing, apparel and photo
products have resulted in new competition as a result of us entering 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.
Business Segment and Geographic Information
As of June 30, 2013, our reportable operating segments consist of North America, Europe and Most of
World. For more segment and geographic information about our revenues, operating income and long-lived assets,
see Item 8 of Part II, “Financial Statements and Supplementary Data — Note 15 — Segment Information” and
Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The
descriptions of our business, products, and markets in this section apply to all of our operating segments.
Seasonality
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, such as holiday cards, calendars,
photo books, and personalized gifts. This second fiscal quarter seasonality has increased with our fiscal 2012
acquisition of Albumprinter Holding B.V. ("Albumprinter"), which also has a highly seasonal business. Net income
during the second fiscal quarter represented 78%, 72%, and 41% of annual net income in the years ended June 30,
2013, 2012, and 2011, respectively.
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, consumer protection, or other areas of our business could
limit or otherwise adversely affect the manner in which we currently conduct our business.
Employees
As of June 30, 2013, we had approximately 3,900 full-time and approximately 150 temporary employees
worldwide. None of our employees are represented by a labor union. We are required to provide certain employees
in the Netherlands with compensation and benefits equal to or greater than those provided in a collective bargaining
Form 10-K