ResMedResMed (NYSE:RMD) shares dipped today on third-quarter results that came up shy of the consensus forecast.

RMD shares were down 3.5% at $206.05 per share in mid-afternoon trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down 0.7%.

The stock hit can also be attributed to a $100 million reduction in financial guidance, with the company’s new projection set for between $200 million and $250 million.

CEO Mick Farrell said in the company’s earnings call — as transcribed by The Motley Fool — a contract from 12 months ago had “a very significant double-digit de-commit” in recent weeks, as well as another commitment that was decreased.

The guidance included expected share gains following the serious recall that knocked Philips out of the respiratory sleep devices market last year, although analysts did project in February that ResMed’s grasp of the market share in respiratory devices would slow this year as Philips attempts to re-enter the space.

Issues with supply chain also reared their head as ResMed had to ramp up to match demand increases related to the Philips recall.

“With that as a headwind into us, all the tailwinds of our work, the five projects — lines of projects — going on, our supply chain allowed us to sort of take two steps forward and two steps back versus two steps forward and one step back,” Farrell said. “That didn’t allow us to achieve that extra $100 million of incremental revenue that we thought that we would achieve here through fiscal 2022 for the first half. And so that’s going to be tougher and it moves things a little bit further back. ”

The San Diego-based respiratory technology developer posted profits of $179 million, or $1.22 per share, on sales of $864.5 million for the three months ended March 31, 2022, for a massive bottom-line gain from the red on sales growth of 12.4%.

Adjusted to exclude one-time items, earnings per share were $1.32, 10¢ behind Wall Street, as revenues missed analysts’ projections by nearly 5%.

“Our third-quarter results reflect strong performance across our business, resulting in double-digit top-line revenue growth including extraordinary demand in our sleep and respiratory care business segment as well as solid high-single-digit growth in our software-as-a-service segment,” Farrell said in a news release. “I am proud of our global team’s ability to pivot and drive continued growth while ongoing supply chain disruptions and a competitor’s recall continue to limit our ability to meet the incredible demand for our products.”