FY13 sales also fell 1% to $52.7bn and operating income was down 16%.
However, Q4 saw better performance for the PC chip maker, struggling to stay relevant in the mobile age. Profits lifted 6% to $2.6bn, operating income also rose.
In an earnings call, Intel CEO Brian Krzanich said "we had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago."
During FY13, Intel PC Client Group revenue slipped 4 percent to $33 billion, from 2012. The PC group's Q4 performance was also flat y-o-y, at $8.6 billion, but rose 2% sequentially.
However, there was better news on Data Center front - sales lifted 7% to $11.2 billion during the last financial year, and up 3% in Q4.
Other Intel architecture segments fell 7 percent.
However, Intel's outlook for 2014 isn't too promising, predicting "flat" revenue, with a gross margin almost 1% lower than FY13 at 59%.
However, it will boost R&D spending to $18.6bn.
"We've built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms," Krzanich told investors.
He also pointed to Intel's ability to innovate, citing the Consumer Electronics Show (CES) in Las Vegas, where "we demonstrated multiple devices that weren't on our roadmap six months ago."
These included a matrix of wearable devices and promising more 'human' computers, which Lenovo, HP and Toshiba will all be featuring on their notebooks and other PCs in the future.
Intel shares fell as much as 4.6% after hours trading on the Nasdaq.