Advanced Micro Devices (AMD) reported a 22 percent fall in quarterly revenue, hurt by weak PC and graphic card sales strong coompetition from Intel.

The company announced revenue for the fourth quarter of 2014 of $1.24 billion, operating loss of $330 million and net loss of $364 million, or $0.47 per share.

"We made progress diversifying our business, ramping design wins and improving our balance sheet this past year despite challenges in our PC business," said Dr. Lisa Su, AMD president and CEO. "Annual Enterprise, Embedded and Semi-Custom segment revenue increased over 50% as customer demand for products powered by our high-performance compute and rich visualization solutions was strong. We continue to address channel headwinds in the Computing and Graphics segment and are taking steps to return it to a healthy trajectory beginning in the second quarter of 2015."

The chip design company hopes to shore up its position in the PC market with its new chip called Carrizo, which will ship during the second quarter this year.

"Consumer and commercial design-win momentum for Carrizo continues to gain momentum because it will deliver the largest ever generational leap in performance-per-watt for our mainstream [processors]," said Su, during a fourth-quarter earnings call on Tuesday.

AMD's annual (2014) revenue was $5.51 billion, up 4 percent year-over-year. Its operating loss was $155 million and non-GAAP operating income of $235 million, compared to non-GAAP operating income of $103 million in 2013.

AMD's Computing and Graphics segment revenue decreased 15 percent sequentially and 16 percent from 2013. The sequential decrease was primarily due to lower desktop processor and GPU sales, and the annual decrease was driven by lower desktop processor and chipset sales.

AMD's client average selling price (ASP) increased sequentially and year-over-year primarily driven by a richer mix of notebook processor sales.

Enterprise, Embedded and Semi-Custom segment revenue decreased 11 percent sequentially primarily driven by lower sales of semi-custom SoCs. Annual revenue increased 51 percent from 2013 primarily driven by increased sales of semi-custom SoCs.

For Q1 2015, AMD expects revenue to decrease 15 percent, plus or minus 3 percent, sequentially.