Spirent Communications PLC (SPT.LN) Tuesday reported that 2008 net profit more than tripled on a bigger-than-expected 8.8% rise in revenue, the fall in the pound and a tax credit, and said it expects demand for its testing services to remain strong in 2009.

The U.K. company, which tests the performance of broadband, telephony and mobile networks for companies including Motorola Inc. (MOT), Verizon Wireless and Cisco System Inc (CSCO), said that although customers are expecting activity to decrease in 2009, they will continue to invest in technology development and consequently in Spirent's testing services.

It said it would get a further boost from sterling's weakness in 2009. If the exchange rate remains at about $1.45 to GBP1, and based on 2008 revenue and operating profit figures, revenue in 2009 will increase by about GBP48 million and operating profit by GBP12 million, it said.

The company earns nearly all its revenues in the U.S., and its earnings are currently being boosted when converted into sterling because the currency has fallen sharply against the dollar.

However, the company stillplans to cut costs by GBP8.2 million in 2009 through changes implemented in the first quarter of the year. In an interview, Financial Director Eric Hutchinson said some manufacturing would be outsourced and about 60 jobs would be cut. The majority of the company's staff are based in the U.S.

Revenue rose 8.8% to GBP257.9 million in 2008 compared with GBP237 million in 2007. This beat a company consensus of six analysts which forecast revenue at GBP251 million.

Net profit for the year to Dec. 31 more than tripled to GBP74.8 million from GBP17.6 million last year. The rise was largely as a result of an exceptional tax credit of GBP25.6 million in relation to an overseas tax position.

"The company benefited from favorable exchange rates and a reduced number of issued shares," Chairman Edward Bramson said in a statement.

Earnings per share excluding the tax credit were up 75% to 6.24 pence per share, compared with 3.57 pence per share a year earlier.

The company said that total order intake in January was flat year-on-year in constant currency terms.

It is proposing a final dividend of 0.6 pence per share which will result in a total dividend for the year of 1.1 pence per share.

At 0846 GMT, Spirent's shares were up 5.4%, outperforming a 1.1% drop in the FTSE 250.

"Earnings per share are ahead of expectation, the outlook isn't too bad, so they're a comforting set of results overall," said Panmure Gordon analyst Nick James, who has a buy rating on the stock.

Cazenove, which rates the stock at in-line, said it was likely to increase its forecasts given the bullish outlook, but that there was still the risk of a share placing by Sherborne Investors Management. Sherborne owns 19.4% of Spirent.

Company Web site: www.spirentcom.com

-By Erica Herrero-Martinez, Dow Jones Newswires; 44 20 7842 9353; erica.herrero-martinez@dowjones.com