Shares of Seagate Technology (NYSE: STX) fell in Wednesday trading after the computer hard drive maker posted weak quarterly profits the day before.

The Scotts Valley, Calif-based firm said it was hurt by falling prices and weaker demand, as well as recent acquisition charges.

It posted a fiscal third-quarter net income of $212 million, or 37 cents a share. That result was 23 percent less than its previous quarter. However revenue at firm increased 24 percent to $2.83 billion.

Sales of its 3.5 inch drives, used in desktop computers, were hurt by consumer PC weakness in the U.S., and lighter than expected PC demand in Asia. Digital video recorders, such as TiVo, which use the drives as well, also saw a softer quarter, the company said.

The weaker quarter and continued pricing pressures from competitors led analysts at Merrill Lynch to lower the firm's full-year earnings outlook for the firm from $1.45 to $1.39 per share.

Despite the recent decline in share price, we continue to stay on the sidelines as we re-assess the competitive environment and the potential for a seasonal lift later in the calendar year, the brokerage told clients in a note Wednesday morning.

Shares of Seagate fell $1.66, or 5.5 percent to $20.93 in afternoon trading on the New York Stock Exchange.