COMPILED FROM STAFF AND WIRE REPORTSThursday, November 01, 2007

CHIP MAKERS

SigmaTel reports third-quarter loss; stronger 2008 results promised

Austin-based SigmaTel Inc. swung to a loss in the third quarter and was cautious about the current quarter but promised stronger results in 2008 based on improved products.

The company lost $4 million, or 11 cents a share, compared with a profit of $11.5 million a year earlier.

Revenue fell 8.5 percent from the year-earlier quarter but was up 34 percent from the second quarter. The company said it expects fourth-quarter revenue of $33 million to $38 million, with a bigger loss.

SigmaTel, which designs chips for personal media players and other products, has been struggling to rebuild its business and cut costs this year in the face of intense foreign competition.

Chief executive Phil Pompa said the company will deliver stronger products and continued growth 'throughout 2008."

The company employed 334 workers worldwide and 182 in Austin at the end of September.

DEVELOPMENT

Management firm picked for new retirement community on RM 620

Life Care Services LLC will market and operate a new retirement community, Independence Square, on part of the former Schlumberger site in Northwest Austin.

Aldi Development is building the project on RM 620, next to the new home of Concordia University.

Joan Carr, regional manager for Aldi Development, said Independence Square will target middle-income retirees.

It will be built in stages, eventually including 500 apartment residences, 78 townhouse-style casitas, 60 assisted living apartments and 40 skilled nursing units.

The first units are expected to open in 2009.

Life Care Services, which is based in Des Moines, Iowa, will begin marketing the project later this year.

CORPORATE RESTRUCTURING

Splintering Temple-Inland sells timberland for $2.4 billion in notes

Temple-Inland Inc., a packaging, lumber products and financial services company in the process of breaking itself up, completed its sale of 1.5 million acres of timberland to an investment group for $2.4 billion in notes.

The Austin-based company will use the notes as collateral for a loan. It will use some of the proceeds to pay down debt and devote about $1.1 billion to a special dividend of $10.25 a share.

The timberland sale is part of a plan announced in February to spin off the company's real estate and financial services arms as separate companies.

The company said it is on track to complete the plan by the end of the year.