Multiple Signs of Trouble
RigNet has been shaking up its business over the past year. Key executive changes surfaced in January 2016, as the company attempted to push beyond the oil and gas industry vertical. Around the same time, the company completed the Tecnor acquisition.
"Our managed services business performed well against a difficult market that was challenged as a result of declining oil prices and reduced customer spending. While we are operating in a market that we anticipate will remain difficult in the interim, we will continue to focus on providing the same best-in-class and high quality services to the energy industry during this down cycle. Importantly, we have taken steps to expand our service offerings beyond an energy pure play by focusing our managed services core competencies on additional remote communication market opportunities. We are disappointed in the amount of time and resources it has taken to resolve the outstanding project contractual dispute with our TSI customer. While we recorded a significant adjustment in the quarter, we are pursuing multiple avenues of dispute resolution that are available to us to reach a satisfactory conclusion to the matter."
RigNet: New CEO Arrives, Restructuring Plan Emerges
By May 31, 2016, RigNet announced Steven E. Pickett as its new CEO. Pickett's background includes a blend of technical, network and global experience. After six weeks on the job, Pickett has now unveiled the company reorganization and staff cuts.In a prepared statement he said:"By implementing this new organizational structure, the company will reduce spending and both flatten and streamline the organization to provide best-in-class customer experiences across the world. We will be better positioned to generate revenues from over-the-top applications that can help our customers drive efficiency in their businesses. And, through more focused efforts, we will be better positioned to grow revenue in new vertical markets."
