One of the world’s largest producers of respiratory medical devices, Philips, took a striking financial hit during the last quarter with revenue dropping 7.6% percent from the previous year.

In June, the company issued a CPAP and ventilator machine recall over concerns that a type of foam inside the machines could disintegrate and release hazardous, possibly cancer-causing, particles. The recall affected between three and four million patients and left Philips scrambling to secure new materials at a time when the global supply chain was already snarled by the pandemic, according to a recently released financial report.

“This quarter’s sales were impacted unfavorably by intensified global supply chain issues, such as the shortage of electronic components, and the anticipated revenue consequences of the sleep recall, as we are prioritizing the remediation of affected devices in use by patients,” explained Frans van Houten, CEO of Philips, in a written statement. 

Philips is also faced with several class-action lawsuits and individual personal injury claims from patients who used the affected machines. However, the company said it is unable to reliably estimate the financial effect of these legal challenges.

Since the recall, Philips has produced a total of approximately 750,000 repair kits and replacement machines, but less than half of those have yet to reach patients. Nevertheless, the company’s leadership promises they are working diligently to reach those who have been impacted.

“The repair and replacement program related to the sleep recall notification is underway in the US and several other markets,” said van Houten. “I am conscious of the impact this is having on patients and caregivers, and we are doing everything we can to deliver a solution as fast as possible.”