VPRT » Topics » Revenue Recognition

These excerpts taken from the VPRT 10-K filed Aug 29, 2008.

Revenue Recognition

 

Customer orders are received via the Company’s websites and are primarily paid for using credit cards, and also through direct bank debit, wire transfers and other payment methods. The Company recognizes revenue arising from sales of products when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, the product has been shipped and title and risk of loss transfers to the customer, the net sales price is fixed or determinable and collectibility is reasonably assured. The Company offers discounts to its customers through various advertising campaigns which often contain sales offers that include discounts on the Company’s list prices. These discounts are recognized as a reduction of revenue in the Company’s consolidated statement of income at the time revenue is recognized. The Company also generates revenue from order referral fees, revenue share and other fees received from merchants for customer click-throughs, distribution of third-party promotional materials and orders that are placed on the merchants’ websites. Revenue generated from order referrals is recognized in the period that the click-through impression is delivered, provided that there is persuasive evidence of an arrangement, the fee is fixed or determinable, no significant obligations remain and collection is reasonably assured.

 

A reserve for sales returns and allowances is recorded based on historical experience or specific identification of an event necessitating a reserve.

 

Shipping, handling and processing costs billed to customers are included in revenue and the related costs are included in cost of revenue.

 

Sales and purchases in countries which are subject to Value Added Tax (VAT) are recorded net of VAT collected and paid as the Company acts as an agent for the government.

 

Revenue Recognition

STYLE="margin-top:0px;margin-bottom:-6px"> 

Customer orders are received via the Company’s websites and are primarily paid
for using credit cards, and also through direct bank debit, wire transfers and other payment methods. The Company recognizes revenue arising from sales of products when it is realized or realizable and earned. The Company considers revenue realized
or realizable and earned when it has persuasive evidence of an arrangement, the product has been shipped and title and risk of loss transfers to the customer, the net sales price is fixed or determinable and collectibility is reasonably assured. The
Company offers discounts to its customers through various advertising campaigns which often contain sales offers that include discounts on the Company’s list prices. These discounts are recognized as a reduction of revenue in the Company’s
consolidated statement of income at the time revenue is recognized. The Company also generates revenue from order referral fees, revenue share and other fees received from merchants for customer click-throughs, distribution of third-party
promotional materials and orders that are placed on the merchants’ websites. Revenue generated from order referrals is recognized in the period that the click-through impression is delivered, provided that there is persuasive evidence of an
arrangement, the fee is fixed or determinable, no significant obligations remain and collection is reasonably assured.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:5%">A reserve for sales returns and allowances is recorded based on historical experience or specific identification of an event necessitating a reserve.

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Shipping, handling and processing costs billed to customers are included in revenue and
the related costs are included in cost of revenue.

 

Sales and purchases
in countries which are subject to Value Added Tax (VAT) are recorded net of VAT collected and paid as the Company acts as an agent for the government.

 

STYLE="margin-top:0px;margin-bottom:0px">Cost of Revenue

 

FACE="ARIAL" SIZE="2">Cost of revenue consists of materials used to generate printed products, payroll and related expenses for printing personnel, supplies, depreciation of equipment used in the printing process, shipping charges, website hosting
costs and other miscellaneous related costs of products sold by the Company (see Note 3).

 


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Table of Contents


VISTAPRINT LIMITED

 


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

SIZE="2">Years Ended June 30, 2008, 2007 and 2006

(in thousands, except share and per share data)

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This excerpt taken from the VPRT 10-K filed Aug 28, 2007.

Revenue Recognition

 

Customer orders are received via the Company’s websites and are primarily paid for using credit cards, and also through direct bank debit, wire transfers and other payment methods. The Company recognizes revenue arising from sales of printed goods when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, the product has been shipped and title and risk of loss transfers to the customer, the net sales price is fixed or determinable and collectibility is reasonably assured. The Company offers discounts to its customers through various advertising campaigns which often contain sales offers that include discounts on the Company’s list prices. These discounts are recognized as a reduction of revenue in the Company’s consolidated statement of operations at the time revenue is recognized.

 

The Company also generates revenue from order referral fees, revenue share and other fees received from merchants for customer click-throughs, distribution of third-party promotional materials and orders that are placed on the merchants’ websites. Revenue generated from order referrals is recognized in the period that the click-through impression is delivered, provided that there is persuasive evidence of an arrangement, the fee is fixed or determinable, no significant obligations remain and collection is reasonably assured.

 

A reserve for sales returns and allowances is recorded based on historical experience or specific identification of an event necessitating a reserve.

 

Shipping, handling and processing costs billed to customers are included in revenue and the related costs are included in cost of revenue.

 

This excerpt taken from the VPRT 10-K filed Sep 13, 2006.

Revenue Recognition

 

Customer orders are received via the Company’s websites and are primarily paid for using credit cards, and also through direct bank debit, wire transfers and other payment methods. The Company recognizes revenue arising from sales of printed goods when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, the product has been shipped and title and risk of loss transfers to the customer, the net sales price is fixed or determinable and collectibility is reasonably assured. The Company offers discounts to its customers through various advertising campaigns which often contain sales offers that include discounts on the Company’s list prices. These discounts are recognized as a reduction of revenue in the Company’s consolidated statement of operations at the time revenue is recognized.

 

The Company also generates revenue from order referral fees received from merchants for customer click-throughs and orders that are placed on the merchants’ websites. Revenue generated from order referrals is recognized in the period that the click-through impression is delivered, provided that there is persuasive evidence of an arrangement, the fee is fixed or determinable, no significant obligations remain and collection is reasonably assured.

 

A reserve for sales returns and allowances is recorded based on historical experience or specific identification of an event necessitating a reserve.

 

Shipping, handling and processing costs billed to customers are included in revenue and the related costs are included in cost of revenue.

 

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