Shares of International Rectifier Corp. rose 8 percent on Tuesday after the semiconductor company reported a smaller-than expected net loss in its fiscal third quarter and was optimistic about the current quarter.

After the markets closed on Monday, the El Segundo maker of power management chips reported a net loss of $21.2 million (-31 cents a share), compared with a loss of $2.5 million (-4 cents) than in the same period a year ago. But adjusted for asset impairment, restructuring and other one-time charges, the loss was 29 cents, compared with a 40-cent adjusted loss anticipated by analysts surveyed by Thomson Reuters.

Revenue fell more than 9 percent to $224 million, compared with the Wall Street consensus of $229 million. The company’s products are used in a wide range of consumer and industrial products, from automobiles and energy-efficient appliances to computers and aircraft.

Chief Executive Oleg Khaykin said that International Rectifier’s financials are on track to improve because the company not only reduced inventory during the quarter but closed its El Segundo manufacturing facility and downsized its Newport operations. At the same time, product demand appears to be picking up after a sustained slump.

For its current fourth quarter, executives are expecting revenue of between $255 million and $265 million, above the Wall Street consensus of $251 million.

“Throughout the March quarter, we saw booking trends improve across all our end markets,” Khaykin said in a statement. “As a result of improving business demand, resizing our manufacturing footprint and reducing fixed costs, our gross margin recovery is currently tracking ahead of prior expectations.”

Christopher Rolla at FBR Capital Markets in New York said that while International Rectifier had performed worse than its peers during the downturn, management seems to be on track for properly right-sizing the company for the current market. “Most of the firm’s negative news seems to be behind it, with gross and operating margins likely to move much higher in the coming quarters,” Rolla said in a note to clients.

Shares on Tuesday closed up $1.57, or 8 percent, to $21.21 on the New York Stock Exchange.