On March 6, the shares of Marvell Technology rose after the chip maker beat expectations when it issued its in-line results.

A day before on Thursday the company announced its plan to axe 15% of its workforce or approximately 850 positions.

Marvell closed at $8.06 a share after gaining 7.2%.

The Santa Clara based company reported a fourth-quarter loss of $65 million, or 11 cents a share, from $1.3 million, or break-even a share, in the same period last year.

With the exclusion of special once off items, the company would have reported a profit of 5 cents a share in the recent quarter. Revenue plunged to $513 million from $845 million last year.

According to by Thomson Reuters analysts’ estimates a quarterly loss of 1 cent a share for the period.

We think January marked the bottom for Marvell, wrote Mark McKechnie of Broadpoint AmTech Research, who upgraded the stock to a buy rating on Friday.

Near-term end-markets remain challenging, but the worst of the inventory cycle and number cuts are behind and valuation appears attractive. We could be early, but would buy here or on weakness”, he added.

Analyst Cody Acree of Stifel Nicolaus wrote in a research note that Marvell, which makes chips used for cell phones, Internet networking equipment and communications devices, continues to deal with the challenges of a waning economy.