Vistaprint 2013 Annual Report Download - page 20

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experience could be harmed, which would damage our reputation and brands and substantially harm our business
and results of operations.
Acquisitions may be disruptive to our business.
A component of our strategy is to selectively pursue acquisitions of businesses, technologies, or services,
but the time and expense associated with finding suitable businesses, technologies, or services to acquire could
disrupt our ongoing business and divert our management's attention. In addition, we may need to seek financing for
acquisitions, which may not be available on terms that are favorable to us, or at all, and can cause dilution to our
shareholders, cause us to incur additional debt, or subject us to covenants restricting the activities we may
undertake. For example, to finance the acquisitions we completed in fiscal 2012, we borrowed amounts under our
credit facility.
In addition, integrating newly acquired businesses, technologies, and services is complex, expensive, time
consuming and subject to many risks, including the following:
• We may not be able to retain customers and key employees of the acquired businesses, and we and
the acquired businesses may not be able to cross sell products and services to each other's customers.
• In some cases, our acquisitions are dilutive for a period of time, leading to reduced earnings. For
example, both the Albumprinter and Webs acquisitions have resulted in additional amortization and
share-based compensation expense.
• An acquisition may fail to achieve our goals and expectations for the acquired business because we fail
to integrate the acquired business, technologies, or services effectively, the integration is more
expensive or takes more time than we anticipated, or the acquired business does not perform as well
as we expected.
• Acquisitions can result in large write-offs including impairments of goodwill and intangible assets,
assumptions of contingent or unanticipated liabilities, or increased tax costs.
We face risks related to interruption of our operations and lack of redundancy.
Our production facilities, websites, infrastructure, supply chain, customer service centers, and 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:
• 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;
• attacks on our external websites or internal network by hackers or other malicious parties;
• undetected errors or design faults in our technology, infrastructure, and processes that may cause our
websites to fail;
• inadequate capacity in our systems and infrastructure to cope with periods of high volume and demand;
and
• human error, including but not limited to poor managerial judgment or oversight.
In particular, both Bermuda, where substantially all of the computer hardware necessary to operate our
websites is located in a single facility, and Jamaica, our largest customer service, sales, and design support
operation, are subject to a high degree of hurricane risk and extreme weather conditions.
Form 10-K