Microchip Technology Inc. (MCHP, +0.29%) shares dropped in the extended session on Thursday after the computer component maker reported slightly better-than-expected earnings and that its outlook was consistent with expectations. Microchip’s shares fell 10% after-hours, following a decline of 1.5% in the regular session. The stock closed at $458.93. The company reported a net income for the fourth quarter of 604 million dollars, or $1.09 per share. This compares to $437.9 millions, or 77c per share, during the same period last year. The adjusted earnings, which excludes stock-based compensation costs and other items, was $1.64 per share compared to $1.35 in the previous period. The revenue grew to $2.23 from $1.84 in the previous quarter. FactSet surveyed analysts who forecast earnings of just under $2.23 billion on revenue. Microchip predicted fiscal first-quarter earnings adjusted between $1.63 and $1.65 per share on revenues of $2.26 to $2.32 billion. Analysts estimated $1.64 per share on $2.26 billion in revenue. “During the quarter of March, we took additional actions to prepare ourselves for a smooth landing as lead time for many products continues to improve. Ganesh Moorthy said that Microchip’s chief executive was able to move significant amounts of inventory to later quarters at the request of our customers. This resulted to an increase in inventory on Microchip’s balance sheet. We see little risk of obsolescence with our higher inventory levels, given the long life cycle of our products. On March 31, the company announced that it would be reducing its inventory levels. The company stated that “our actual inventory level depends on the inventory our distributors hold to support our customers, the overall demand for our product, and our production levels.” Microchip announced an increase of 39% in its quarterly dividend, to 38.3cents per share. This is up 38.8% compared to the previous quarter. Dividends are payable on June 5, to shareholders who have registered on May 22,