CEO Comments on Q3
It is with optimism I see Waystream's strong growth during the year. In my first CEO letter, I want to emphasize the importance of an organization that is agile to changes in the outside world and which rests on a robust strategy. The strong growth indicates that we have an attractive offer that meets the market's needs and demands. This gives me, as CEO, the opportunity to focus on developing a strategy that covers both international expansion and product portfolio.
As announced earlier, the MPC480 platform was launched during the year with flexible Broadband Network Gateway functionality. The platform complements our existing range of access network equipment and enables us to offer the customers, if desired, a complete solution. However, most of our business will still be with routers and switches for the access network, while the MPC480 will complement our product portfolio.
We see a continued increase in demand for our offer and, in the third quarter, we increased by 60% in net sales compared with Q3 2016. This growth is related to upgrades in existing systems, which means that this level of growth is unlikely to be maintained in the next few quarters. In total, net sales for the first nine months are 46% higher than in the same period 2016. Technological changes in Sweden, Norway and Denmark increases demand for Waystream's solutions, where the sale of access equipment and fiber optics is particularly successful. This, combined with the ambitious political goals of IT infrastructure in Sweden and the Nordic region, gives us reassurance and confidence in continuing to develop our product- and service portfolio. Waystream will continue to meet the growing demand for innovative, flexible and cost-effective solutions.
Waystream has previously been clear about the ambition to develop internationally, particularly in the European market. The ambition has not changed, and international market penetration is still a priority. However, as a newly appointed CEO, I identified a need for a proper market analysis and strategy to further increase the conditions for correcting our efforts. This work is currently in progress. Since October, Cygate has been part of our partner network, which we are proud of. This indicates that our new partner program is more attractive for the leading providers of IT infrastructure. In August, we entered into a partner agreement with German Anedis, something that strengthens our position in a market where we notice an increasingly lively political discussion about better broadband access.
Waystream employed a sales person during the third quarter, and we will shortly be able to introduce additional employees to our sales team, as well as a CTO. It is my absolute conviction that this important recruitment will give us the right conditions to continue to sharpen our offer and to find new partners in order to increase our business. In summary, in the first nine months of 2017 we had positive development, with strong growth mainly in the Swedish and Nordic markets. I have clarified and identified a need for an international market analysis and strategy. Together with current and new colleagues, we look forward to implementing this in order for us to be well-prepared to be part of the expansion of the broadband network also in other European markets.
For more information, please contact:
Mats Öberg, VD Waystream
Mobile: +46 (0) 76 881 81 31
Waystream sells and designs advanced digital infrastructure including switches and routers. With our products and expertise, we help telecom operators and service providers to offer reliable and user-centric network services with a high level of functionality. Our products are smart, easy to use and manage, and designed to create the best possible experience for the end user.
The company is traded on the NASDAQ First North. Waystream’s Certified Adviser is FNCA Sweden AB.