Electronics giant Philips (AMT:PHIA) reported a 27 percent drop in first quarter profits on Monday morning, as the company starts streamlining into a high-end medical technology firm.

Net income fell in the first three months fell to 94 million euros, down from 128 million euros for the same period last year 2017.

Sales in the first quarter were also down at 3.9 billion euros, 2 percent lower than the same time last year. However, the company added that it equalled a comparable growth of 5 percent after taking into account currency fluctuations, and the sale of the Philips Lighting arm.

In a statement, the group said it had been hit by both restructuring costs and acquisitions, as it looks to evolve its portfolio. Traditionally a household electronics retailer, the company has recently made the move into the medical and health technology sector, choosing to focus its main development there.

“While there is more work to be done, 2018 started well,” said chief executive office Frans van Houten.

On the Amsterdam market, Philips shares are currently up 3.64 percent at 34.13 (0908GMT).