Microchip Technology Inc. /zigman2/quotes/208326291/composite MCHP +0.54% shares dropped more than 5% in after-hours trading Tuesday after the company revealed that earnings and sales declined from last year. Microchip reported fiscal second-quarter profit of $108.9 million, or 43 cents a share, on sales of $1.34 billion, down from $1.43 billion a year ago. After adjusting for share-based compensation and other effects, Microchip reported earnings of $1.43 a share, down from $1.58 a share a year ago. Analysts on average expected adjusted earnings of $1.44 a share on sales of $1.35 billion, according to FactSet. "Our September quarter financial results were reasonably good despite a challenging economic environment," Chief Executive Steve Sanghi said in the announcement. The company projected fiscal third-quarter adjusted earnings of $1.12 to $1.32 a share on sales of $1.2 billion to $1.31 billion, while analysts on average were expecting adjusted earnings of $1.45 a share on sales of $1.35 billion, according to FactSet. Microchip shares had gained 39% so far this year, as the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.39% increased 22.8%.