Citrix Systems buys ViewSoft for $32 million

Software developer Citrix Systems Inc. (Nasdaq: CTXS) said Monday it will buy privately held ViewSoft Inc. for $32 million and take one-time charge of $2 million in its third quarter.

ViewSoft develops software for multi-tier and Web-based application development and deployment.

Citrix officials said it will use ViewSoft's technology to extend the flexibility and cost benefits of server-based computing to Web-enabled and multi-tier applications -- including applications based on Microsoft Corp.'s (Nasdaq: MSFT) DCOM and DNA component architectures as well as those containing Java and HTML front ends.

"This new software will deliver a rich user experience and a new level of interactivity to Web-based applications with a thin-client footprint," said Citrix CEO Mark Templeton in a prepared release.

Citrix shares closed off 1 3/8 to 58 1/2 ahead of the announcement.

First Call consensus expects it to earn 31 cents a share in its second quarter and $1.29 a share in the fiscal year.

Last quarter, Citrix easily topped analysts' estimates, raking in $28.2 million, or 30 cents a share, on sales of $85 million.

The stock surged to a 52-week high of 63 1/8 earlier this month after falling to a low of 23 1/8 in October.