STOCKS TO WATCH: Micro Linear, MP3.com, Organic and VoiceStream

The chipmaker will be active after announcing late Wednesday that it sold off three of its product lines to Fairchild Semiconductor for a $10 million in cash.

Micro Linear unloaded its power management, bus interface and video product lines, three divisions that accounted for about 65 percent of its total sales in the first half of the year.

Company officials said the move will help it to focus on developing new product lines that expand the data communication and wireless product lines it retains after the transaction.

Micro Linear (Nasdaq: MLIN) shares closed up 1/8 to 5 1/2 ahead of the news.

"These products do not fit our strategy as a fabless semiconductor company and we felt it important to find an acquirer that could support the ongoing needs of our growing customer base," CEO David Gellatly said in a prepared release.

In its latest quarter, Micro Linear posted a profit of $379,000, or 3 cents a share, excluding an $8.1 million charge related to a legal settlement.

MP3.com shares could face some heat Thursday after a federal judge found the company willfully infringed copyrights belonging to Seagram Co.'s Universal Music Group in a ruling that could cost the online music provider from $118 million to $250 million.

MP3.com fell to 5 7/8 in after-hours trading, off $2 a share from its close of 7 7/8.

MP3.com shares hit a 52-week high of 64 5/8 in November before tumbling to a low of 6 1/2 in April.

Four of the six analysts following the stock rate it a "buy."

Yet another Internet consulting firm will be worth watching Thursday after Organic warned that it will post a loss in its third quarter as result of sluggish sales.

The company said it now believes it will achieve profitability by the second quarter of 2001.

Organic said it expects to increase third quarter revenue on a sequential basis by about five percent from the second quarter's $37.2 million.

It noted the industry, in general, seems to be experiencing a temporary lull.

Last week Donaldson Lufkin & Jenrette cut ratings on the Internet consulting sector, including Organic, to market performance from market outperformance.

Organic shares closed up 9/32 to 5 5/16 ahead of the profit warning.

VoiceSteam should be active after announcing the closing of its $5 billion merger with Deutsche Telecom (NYSE: DT).

Its shares closed off 3 11/16 to 114 1/2 Wednesday.

"With this investment, we look forward to bringing even more wireless competition, more choice, and more services to more Americans," said CEO John Stanton in a prepared release. "The investment provides early momentum for us to accelerate our nationwide build-out, purchase additional spectrum, upgrade our network and services, and participate in the upcoming U.S. wireless license auctions."

The merger, announced in July, is subject to U.S. regulatory approvals and clearances, including by the Federal Communications Commission, the Department of Justice, and the multi-agency Committee on Foreign Investment in the United States, approval by VoiceStream shareholders, and customary closing conditions.

Deutsche Telecom shares ended off 1 3/16 to 40 3/16.

Reuters contributed to this report.