France-based chip supplier Inside Secure today reported a sharp decline in its revenue in the first quarter from its NFC chips, blaming the situation on excess inventories of NFC chips on hand by its main customer BlackBerry.
Revenue in Inside’s Mobile NFC segment was only $4.5 million during the quarter, down by more than 60% from both the fourth quarter of 2012 and the same period last year. The chip supplier added that the situation is improving for the present quarter.
“BlackBerry and its subcontractors, the (Inside) group’s main customers for this business segment, largely drew on their existing component inventories in the period, rather than making new purchases from Inside Secure,” the chip supplier said in its quarterly sales report today. “The backlog for the second quarter of 2013, however, is showing growth.”