RigNet, Inc. (NASDAQ:RNET) Q1 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 11:00 am ET

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RigNet, Inc. (NASDAQ:RNET) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
Lee Ahlstrom

that, obviously as our customers are getting noticed themselves. And so again, it's pretty fluid situation. But I know Errol and his team of sales executives and customer service delivery managers are in contact with our customers around the world every day to help understand exactly what the situation is and what we can be looking forward to. Errol, I don't know if you want to add any comment there or Steve.

Executive
Errol Olivier

Yeah. So, I want to add just a little bit. First, I'm pretty impressed and encouraged by our ability to execute in times like this, our operations group is really been able to hold us all together. So customer satisfaction for the services we deliver is playing an important factor in what's going on today. Yes, we're seeing customers ask for discount gifts or some jobs that are canceling. But the key thing for us right now is to make sure that our customer services don't suffer. And we've been doing a great job of that.

But I'm even more encouraged by the opportunities that are coming into the pipeline, and I can't tell you exactly, the numbers, what offsets what, everything's fluid, everything's dynamic. But, to see that the pipeline is still very active, and that we're -- we've got a busy proposals group that's proposals out every week, that certainly hasn't slowed down, means that there's still some other opportunities out there outside of just the core drilling market that we've been chasing and a lot of this comes from the expansion out into the production facilities and the other products and services we're offering like ABI and also Intelie and others.

Analyst
Allen Klee

That's great. Maybe just following-up. You talked about opportunities in government to, is government as a percentage of how much you're selling into government today? Is that a meaningful number? Or is it not yet material?

Executive
Steve Pickett

Not yet meaningful. But we're quite encouraged by the level of engagement that we have, not just here in the US, but internationally as well. Yes, particularly in the Middle East.

Analyst
Allen Klee

Okay. And then you gave some very good data points to kind of compare this downturn to the prior one. Is it fair to say the conclusion that is kind of -- and everyone's crystal balls, not very good these days. But based on what you know today that this downturn might not be as bad as the last one? Or do you not know enough to be able to say that?

Executive
Steve Pickett

Well, in terms of the downturn itself, I don't know, if we know enough yet to know how it will compare. But what I do feel confident about is that we are better prepared to deal with the downturn, whatever it ends up looking like, and given what we've done to transform the business over the last couple of years. Yeah, not to say there won't be pain along the way, of course, but I think we are at a much better position than we