Identive Group’s losses narrowed in the second quarter, and the company recorded strong growth in sales of NFC tags, including tags for interactive toys for video games.

The announcement of the second quarter earnings confirmed preliminary figures released last month. The U.S.-based secure ID, tag and reader supplier this week also announced a private stock placement that it expected would raise $7.1 million. It would use the proceeds to help fund capacity for tags and other lines and improve its balance sheet. The placement follows restructuring last year and substantial losses.

The company reported a $27 million order backlog at the end of the second quarter, of which $19 million is scheduled for delivery in the next 12 months. A spokeswoman told NFC Times that a “substantial amount of our backlog relates to NFC orders from a number of industries, including both M2M applications, such as games and phone-based applications, including payment.” Identive began the quarter with a $22 million backlog, including $5 million to $8 million in NFC orders.