NEW YORK (TheStreet) -- Wall Street is too wrapped up in Qualcomm's (QCOM) troubles in China to appreciate the success of the company's Qualcomm Chip Technologies (QCT) chip business, CFO George Davis told TheStreet.
"It's easy to get overly focused on one set of issues. And anything that impacts the licensing business, because it's such an important part of the valuation of the company, sometimes ... has people missing just how strong the year QCT had in 2014," Davis said following the company's meeting with analysts at the Grand Hyatt hotel in New York City.
The set of issues Davis is referring to is the year-long unresolved investigation by China's National Development and Reform Commission into possible antitrust violations. Qualcomm is also embroiled in an ongoing licensing dispute with a Chinese device manufacturer. The company provided no guidance Wednesday as to when the conflicts would be resolved, and both issues have already negatively impacted the business as a result of lost royalty payments.
In the September quarter, Qualcomm posted $6.7 billion in revenue, which disappointed market consensus. Shares have remained depressed by more than 8% since the report.
The semiconductor company made an effort Wednesday to paint a rosier outlook for 2015 and beyond, telling analysts that its five-year compound annual growth rate (CAGR) will be between 8% and 10% per year. Earnings per share, Qualcomm CEO Steven Mollenkopf said, will grow at an even faster pace.
China, as it stands, is both a blessing and a curse for Qualcomm. The San Diego-based company is shipping its smartphone chips at a speedier clip in the region (and other emerging markets), but, at the same time, taking a hit on licensing fees.