VistaPrint, a publicly traded online printer, held an event last week for investors - its first annual investors and analysts day. VistaPrint had annual revenue of $152 million in fiscal year 2006 and a current market cap of nearly $1.5 billion. In October, the company reported that revenue in the first quarter of fiscal year 2007 surged 73% to $50 million and net income came in at $6 million, up from $2.9 million in the same period a year ago. Key executives gave presentations detailing the company's past performance and future plans. (Transcript and slide pdfs can be found here. The webcast of this event can be found here.)

There were many interesting insights gleaned from the 43 page transcript. After the presentation, Robert Keane, CEO and Chairman, and other VistaPrint executives answered questions from the audience. One question was about the barrier of entry for companies like Cenveo and RR Donnelley into their space. The other was a question about Kodak. Here are the answers as recorded in the transcript by Thomson Financial.

Question About Competitors Copying VistaPrint's Model:

Robert Keane: So the question is, we've often talked about the difficulty of competitors in replicating this business model, and I said I would speak specifically about the high-volume industrial printers and how they might be able to realign their business to address this market.

Anyone, in theory, could come into this business, and obviously the more successful we are, the more people are going to attempt that. We do think there's a lot of barriers to entry and I keep repeating that we think there's a lot of advantages to scale in this business.

The first and foremost, I think anyone who comes in here will be starting six years behind us and that just makes it difficult, whoever they are. As to the large industrial printers, if you actually look at what drives VistaPrint, in all due respect to the phenomenal things that we do on the manufacturing facility, that is a small portion of the puzzle, a small piece of the puzzle.

The marketing prowess we have in Janet's (Janet Holian, VP Marketing) team and the 100-plus people doing direct marketing, we spend significantly more money on marketing and direct marketing than we do on printing. We spend about 20% of revenues on printing, low 20s and mid 30s in terms of marketing. Secondly, we have six-plus years of software developing in over 100 people in the technology and development group, and those - both marketing, tech and development, are growing roughly in line with revenues.

We invest huge amounts of effort in this whole concept of productization, and that is a very obscure concept to the traditional printers. And, finally, the large firms, like a Donnelley or Cenveo, who I think are great, great companies, are used to selling truckloads of it - could be anything from Yellow Pages to magazines to consumer goods packaging, which are worth hundreds of thousands, if not millions, of dollars per month per customer, and would have to totally reconfigure their entire way of doing business, from the way they go to market to the way they produce to the way they ship to produce on a $30 unit.

So I certainly think people may get interested. I would doubt that those particular printers would be the people who would be successful in doing it, but I can't say what they're thinking.”

Question About Kodak:

A question was asked about Kodak's photo service, but Keane thought it was about Kodak's products in the offset and digital arena.

Robert Keane: "Okay, what do we see Kodak doing in our lines of business? I see Kodak as a great supplier, and/or potential supplier, so Kodak is a big company, but to my knowledge, and Chris (Chris Connors, VP of Manufacturing), tell me where you see otherwise, but we see them as -- they (want to) supply plates. We happen to, I think, buy Fuji plates, but Fuji and Kodak make those plates, both of them.

Secondly, they are a competitor to people like Xerox and Indigo and Ikon and Kodak with a subsidiary they call NexPress, which makes very high-quality digital printing equipment. So we would see them as either a capital equipment supplier for the digital presses and/or a consumables supplier. They're a very high-quality company. I believe they also (are) in the plate-making equipment market, and they have quite a big pre-press line, and, Chris, I don't know how else we use them...

Chris Connors: No, I think for the most part, we have looked at them and we continually -- our engineering team is out looking at new technologies, and we have looked at NexPress and some of the other alternatives to HP Indigo. (VistaPrint reportedly has 15 HP Indigo presses.) We're continually striving to get things better, faster and cheaper, but we also have to weigh that with getting too many different types of technologies in our plant, but NexPress is really -- in particular, Kodak, we're [focused]....

At that point Keane interrupted and realized the question was about Kodak's photo service and he proceeded to redirect his answer toward their business from the consumer market.