France-based chip supplier Inside Secure cut its operating losses during the first half, as it continues its transition to offering more security products and moving away from its past emphasis on contactless and NFC controllers.

The company, in first-half results released Friday, showed an operating loss of $6.3 million for the first half, down 61% from a loss of just under $16.2 million in the first half of 2012. It credited higher margins from its acquisition of Embedded Security Solutions unit, which it acquired from U.S.-based AuthenTec in December. The unit designs software and hardware products used for digital rights management, virtual private networks and other network security.

Inside also cut expenses in its mobile NFC unit. But the chip supplier still showed a total net loss for the first half of $21 million, about the same as the first half of 2012.