VistaPrint Limited (NASDAQ:VPRT) posted declines in both earnings and revenue for its third fiscal quarter as it faced headwinds in a number of its core markets. As a result, a massive selloff of the company’s stock began last night in after-hours trading—after that nasty report was released.

Vistaprint

VistaPrint gravely disappoints

The company reported a sharp decline in net income, which fell from $5.9 million last year to $1.4 million this year. Earnings dived from 17 cents per share to 4 cents per share this year. Excluding items, adjusted earnings were cut in half from 24 cents per share or $8.3 million. In the same quarter a year ago, adjusted earnings were 48 cents per share of $16.9 million.

Analysts had been expecting earnings of 46 cents per share, so needless to say, VistaPrint Limited (NASDAQ:VPRT)’s earnings results were a massive disappointment. They had been expecting to see revenue of $310.7 million, but the company only brought in $286.2 million in revenue for the quarter. In the U.S., VistaPrint was especially hurt as it is the company’s largest market and revenue slowed significantly in the country.

Where VistaPrint went wrong

VistaPrint Limited (NASDAQ:VPRT) said it was transitioning away from offering deep discounts, according to Reuters, which reports that the company’s big problem was fewer customer additions during the quarter. VistaPrint also said it was focusing more on micro-business customers because they tend to look for better services and products and are less concerned about prices compared to the company’s traditional customers.

VistaPrint Limited (NASDAQ:VPRT) also said last night that it expects to take up to a $14 million charge in connection with the sale of its stake in Namex Ltd., its Chinese joint venture.

The company projects full-year earnings of between $2.70 and $2.85 per share and revenue of between $1.25 billion and $1.27 billion. The company plans to spend between $70 million and $80 million on capital expenditures as it invests in new manufacturing capabilities. The company’s 2014 fiscal year ends June 30.