Respiratory face mask and machine maker ResMed has lifted third-quarter revenue by 13 per cent to $US514 million ($A688.6 million), partly thanks to its acquisition of US health software business Brightree.
But the lift in revenue has missed market expectations, and shares in ResMed were 29 cents, or 3.04 per cent, lower at $9.25 at 1111 AEST.
Excluding the contribution from Brightree, ResMed's revenue for the three months to March 31 was up six per cent at $US479.2 million.
Third-quarter income from operations rose three per cent to $US107.4 million.
Brightree, which ResMed acquired in April 2016, provides business management and clinical software applications for the post-acute care industry, particularly the home/durable medical equipment, home health, and hospice sectors.
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"We had solid double-digit constant currency revenue growth in Q3, led by our Brightree software solutions as well as mask and device sales," ResMed chief executive Mick Farrell said in a statement on Friday.
He said demand for ResMed's new AirFit 20 range of masks was strong.
Also, ResMed is launching the ResMed AirMini - which the company says is the world's smallest continuous positive airway pressure (CPAP) device - in the current quarter.
In the key Americas market, ResMed's revenue rose by 18 per cent in the third quarter to $US332.1 million, which included $US35 million from Brightree.
ResMed also lifted its gross margin to 58.3 per cent, from 57.3 per cent, due to more efficient manufacturing and procurement, and the Brightree acquisition.
ResMed declared a quarterly dividend of 33 US cents per share.
CMC Markets chief market analyst Ric Spooner said ResMed's result was solid but, with the revenue increase a little below market expectations, was not enough to justify the recent rally in the company's share price.
