RigNet Inc.'s Revenue Keeps Growing Even as Its Losses Pile Up
Matthew DiLallo, The Motley Fool,
RigNet(NASDAQ: RNET) continues to report mixed financial results. While revenue rose once again, higher expenses deepened its losses. However, that could change later this year given that conditions in the offshore drilling market may finally start to improve, taking RigNet's earnings up with it.
RigNet results: The raw numbers
Net income (loss)
Earnings per share
Data source: RigNet Inc.
Image source: Getty Images.
What happened with RigNet this quarter?
Recent acquisitions provided a lift.
- RigNet has worked hard to offset the persistent weakness in the offshore drilling market by making acquisitions, which helped boost revenue versus the year-ago period. Furthermore, sales were also higher sequentially, marking the third consecutive quarterly rise in revenue for the company.
- Driving the year-over-year increase in sales was its recently established applications and Internet of Things (apps and IoT) segment, which added $4.4 million to the top line compared to the year-ago period. RigNet noted that this was due to its "strategy of growth into the application layer and internet-of-things space coupled with the acquisitions of DTS and ESS." It also benefited from a $3.8 million year-over-year improvement in systems integration revenue, which helped offset a $4.1 million decline in managed se....