Semiconductor manufacturer STMicroelectronics took a severe beating during 2011 after it became clear that Nokia – its biggest customer – had missed the smartphone rally and was faced with deep financial issues.

STMicroelectronics itself saw a sharp reduction in revenue in 2011 and 2012, which has resulted in the company swinging to losses now. For the full year 2012, it booked a loss of $1.16bn on sales of $8.5bn.

However, the situation seems to have stabilised, with visible traction in order books. STMicroelectronics shares surged after chief executive Carlo Bozotti said the company expects order growth of 5%-10% for the current year.

This builds on the 5% growth seen in the latest quarter. Full-year revenue is expected to be around $9bn, not a great jump from last year’s $8.5bn, but the resulting effect on margins could send the shares higher.

At current prices, the stock trades at a forward price-earnings ratio of 13.2, while its price-sales ratio of 1.01 indicates that it has more room for growth.