What happened

Shares of RigNet (NASDAQ:RNET) had plunged more than 10% by 1:30 p.m. EDT on Tuesday. Fueling the offshore communications and software company's slump were its lackluster second-quarter results.

So what

RigNet continues to struggle with a challenging offshore drilling market. While conditions are improving, the company isn't bouncing back as much as analysts anticipated. That was evident during the second quarter.

A drilling rig in the water with the sun setting in the background.

Image source: Getty Images.

Revenue increased 0.5% year over year (and 5% from the first quarter) to $60.3 million, but still missed the consensus estimate by $600,000. Meanwhile, RigNet recorded an adjusted loss of $0.32 per share. That was not only larger than the $0.23 per share it lost in the year-ago quarter, but also missed analysts' expectations by $0.12 per share. The main issue driving the bigger loss was higher general and administrative expenses.

Now what

While RigNet's second-quarter results remained under pressure, the company "continue[s] to see positive developments across all three segments," according to CEO Steven Pickett. It's winning and renewing contracts to provide communications services to oil and gas companies, seeing increased adoption of its machine-learning software solutions, and responding to an increased number of opportunities to integrate systems on offshore drilling rigs. Because of that, the company remains optimistic that its results should improve in the coming quarters.

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