Exhibit 99.1

Financial Results for the Year Ended December 31, 2019 (Unaudited)

February 14, 2020

(Unit: thousands, % change as compared to the previous year)

The Company’s consolidated financial statements are prepared in U.S. dollars. For amounts disclosed in Japanese yen, an exchange rate of ¥109.56 Japanese yen to $1.00 U.S. dollar was used based on the Telegraphic Transfer Middle Rate quoted by Mitsubishi UFJ Financial Group’s official index as of December 30, 2019.

The Company’s comprehensive income for the year ended December 31, 2019 and 2018 was $2.2 million (¥238.7 million, 15.6%) and $1.9 million (¥206.5 million, 49.8%), respectively. The Company’s non-GAAP operating income for the year ended December 31, 2019 was $3.8 million (¥417.4 million) based on the exclusion of stock-based compensation of $1.4 million (¥155.0 million). The Company’s non-GAAP net income for the year ended December 31, 2019 was $3.5 million (¥379.2 million) based on the exclusion of stock-based compensation of $1.4 million (¥155.0 million) and the relating income tax impact based on a 10.44% effective tax rate. The Company’s non-GAAP operating income for the year ended December 31, 2018 was $3.2 million (¥348.3 million) based on the exclusion of stock-based compensation of $1.4 million (¥149.4 million). The Company’s non-GAAP net income for the year ended December 31, 2018 was $3.1 million (¥344.3 million) based on the exclusion of stock-based compensation of $1.4 million (¥149.4 million) and the relating income tax impact based on a 7.74% effective tax rate.

(Unit: $ or ¥, except for % data)

(Unit: thousands, except per share and % data)

(Unit: thousands)

(Unit: $ or ¥, except for % data)

(Unit: thousands, except per share and % data)

The forecasted basic and diluted EPS for the year ending December 31, 2020 was computed using a forecasted weighted average shares outstanding for the year ending December 31, 2020. The forecasted non-GAAP figures exclude stock-based compensation of $1.4 million (¥152.4 million) net of the relating income tax impact based on a 14.8% effective tax rate.

The Company’s forecasts are made in U.S. dollars.

Audit Procedures:

This Tanshin is not in scope for audit procedures by the Company’s independent auditors under the Financial Instruments and Exchange Act of Japan. Additionally, as of the date of this Tanshin, audit procedures performed in accordance with the standards of the Public Company Accounting Oversight Board (“PCAOB”) in the United States have yet to be completed. The Company’s independent auditors have not compiled or been involved in the preparation of the forecasted financial results for the year ending December 31, 2020. Accordingly, they assume no responsibility for the accuracy or presentation of this information.

Forward Looking Statements:

The Tanshin includes forward-looking statements that involve a number of risks and uncertainties, many of which are beyond the Company’s control. The Company’s actual results may differ from those anticipated or expressed in these forward-looking statements as a result of various factors. All statements other than statements of historical facts contained in the Tanshin, including statements regarding the Company’s future results of operations and financial position, strategy and plans, and the Company’s expectations for future operations, are forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and trends that we believe may affect the Company’s financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in the Tanshin may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Any forward-looking statement made by the Company in the Tanshin speaks only as of the date on which it is made. The Company disclaims any duty to update any of these forward-looking statements after the date of the Tanshin, except as required by law.

Investors Meeting:

The investor meeting for holders of the Company’s Japanese depositary shares (“JDSs”) is scheduled for early June 2020 in Tokyo. Please refer to the Company’s website for details on its planned Investors Meetings.

Appendix Index

The Company’s consolidated financial statements are prepared in U.S. dollars. For amounts disclosed in Japanese yen, an exchange rate of ¥109.56 Japanese yen to $1.00 U.S. dollar was used based on the Telegraphic Transfer Middle Rate quoted by Mitsubishi UFJ Financial Group’s official index as of December 30, 2019. The Company’s JDSs are traded on the Mothers market of the Tokyo Stock Exchange. Each JDS represents one share of common stock.

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Revenue

Revenue increased by $0.9 million (¥102 million), or 3.0% for the year ended December 31, 2019 as compared to the year ended December 31, 2018. This was mainly due to a $6.1 million (¥666 million) increase in automotive market revenue resulting from a 147% increase in volume of shipments offset by changes in customer and product mix. This increase in automotive market revenue was partially offset by a $5.1 million (¥564 million) decrease in security surveillance market revenue due to changes in customer and product mix.

We have determined that pricing of our products remains stable in our target markets.  Fluctuation in our overall average selling price is directly attributable to changes in product mix given the natural pricing variation of the products in our portfolio. When the product mix shifts towards the higher priced products in our portfolio, the average selling price will be higher than when the product mix shifts towards the lower price point products. Changes to the customer mix will result in similar fluctuations of our average selling price.  

Revenue by geographic region

The table below sets forth the major components of the change in revenue by geographic region for the year ended December 31, 2019 and 2018:

Cost of revenue and gross margin

Cost of revenue increased $1.1 million (¥117 million), or 7.0%, for the year ended December 31, 2019 as compared to the year ended December 31, 2018. Gross margin decreased to 49% for the year ended December 31, 2019 from 51% for the year ended December 31, 2018. The increase in cost of revenue was primarily driven by a 23% increase in volume of shipments and a $0.4 million (¥45 million) increase in inventory write downs. The decrease in gross margin was driven by the increase in inventory write downs and changes in customer and product mix.

We expect gross margins to fluctuate in future periods due to changes in customer and product mix, average unit selling prices, manufacturing costs, manufacturing yields, levels of inventory valuation, if any, and levels of product demand.

Research and development expense

Research and development expense decreased $0.9 million (¥95 million), or 11.8%, for the year ended December 31, 2019 as compared to the year ended December 31, 2018. This decrease was primarily due to a $1.5 million (¥162 million) decrease in tape-out expenses offset by a $0.3 million (¥34 million) increase in personnel costs due to a 4% increase in headcount as a result of expanding operations, a $0.2 million (¥26 million) increase in product development expense and a $0.1 million (¥16 million) increase in stock-based compensation expense.

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Selling, general and administrative expense

Selling, general and administrative expense increased by $0.1 million (¥15 million), or 2.1%, for the year ended December 31, 2019 as compared to the year ended December 31, 2018. This increase was primarily due to a $0.3 million (¥31 million) increase in personnel costs, rent, and other office expenses due to a 9% increase in headcount as a result of expanding operations, offset by a $0.1 million (¥16 million) decrease in stock-based compensation.

Other income

Other income for the year ended December 31, 2019 decreased by $0.2 million (¥19 million), or 76.4% as compared to the year ended December 31, 2018 primarily due to foreign currency exchange transactions and foreign currency fluctuations.

Provision for income taxes

The provision for income taxes increased by $0.1 million (¥11 million), or 60.4%, for the year ended December 31, 2019 as compared to the year ended December 31, 2018. The increase in the provision for income taxes was primarily due to an increase in taxable income.

Net Income

As a result of the foregoing, net income increased by $0.3 million (¥34 million), or 16.4%, for the year ended December 31, 2019 as compared to the year ended December 31, 2018.

Our cash, cash equivalents and short-term investments as of December 31, 2019 were $20.9 million (¥2,286 million). We believe our existing cash, cash equivalents, short-term investments and cash we expect to generate from operations will be sufficient to meet our anticipated cash needs for at least the next 12 months.

Operating Activities

During the year ended December 31, 2019, net cash provided by operating activities was $3.4 million (¥374 million), primarily due to net income of $2.2 million (¥240 million) and non-cash charges of $3.0 million (¥327 million) primarily driven by stock-based compensation, depreciation and amortization, provision for excess inventories and deferred income taxes offset by cash outflow from the net change in operating assets and liabilities of $1.8 million (¥193 million). The cash outflow from the net change in operating assets and liabilities was primarily due to a $4.6 million (¥499 million) cash outflow in inventory due to unit production exceeding product sales during the period, offset by a $1.4 million (¥150 million) cash inflow in customer deposits due to timing of customer payments and a $1.2 million (¥135 million) cash inflow in accrued expenses driven by the timing of services performed.

Investing Activities

During the year ended December 31, 2019, cash used in investing activities was $18.1 million (¥1,978 million) primarily due to a $17.7 million (¥1,943 million) cash outflow driven by the purchase of debt securities.

Financing Activities

During the year ended December 31, 2019, cash provided by financing activities was $0.1 million (¥9 million) primarily due to net proceeds from the exercise of stock options.

The following assumptions are used for the Forecasted Consolidated Results of Operations for the year ending December 31, 2020.

Revenue for the year ending December 31, 2020 is expected to be $36.3 million (¥3,975 million), an increase of 13.3% as compared to revenue for the year ended December 31, 2019, driven by increased automotive market sales. Automotive market revenue is expected to increase by $2.9 million (¥313 million), or 26.3%, to $13.7 million (¥1,502 million) for the

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year ending December 31, 2020 as compared to December 31, 2019. This growth is expected to be driven by the increased use of rear-view cameras, car navigation, and drive recorder systems by automotive manufacturers in Japan and Asia. The Company expects to derive 37.8% of its fiscal 2020 revenue from the automotive market. In addition, revenue from the security surveillance market is expected to increase by $1.4 million (¥153 million), or 6.6%, to $22.6 million (¥2,473 million) for the year ending December 31, 2020.

Although seasonal factors in China such as Lunar New Year holidays may negatively impact the Company, the Company expects revenue in the first quarter of fiscal 2020 to increase by $2.9 million (¥314 million), or 57.2% as compared to the first quarter of fiscal 2019. However, as the tape-out expenses of fiscal 2020 are expected to be concentrated in the first and third quarters of fiscal 2020, the first quarter itself is projected to result in a net loss of $0.5 million (¥51 million). Starting the second quarter, the Company expects to begin to generate positive net income for the rest of fiscal 2020. For the year ended December 31, 2020, as a result, net income is expected to be $2.5 million (¥276 million). In addition, the Company anticipates that revenue in the first half of fiscal 2020 will be approximately 43.9% of revenue for fiscal 2020.

The Company’s fiscal 2020 revenue projection is based on the condition of China market and our products currently in production in the automotive market. A recovery in the China market and any new design wins in the automotive market that go into production this year may lead to potential increases in revenue beyond our current projection. Although the Company is still collecting the information regarding the impact of current outbreak of the coronavirus (named “COVID-19”) on the Company, it may adversely affect its business operations and its financial results for fiscal 2020.

Dividend Policy

We have never declared nor paid cash dividends on our capital stock. We currently intend to retain any future earnings to finance the operation and expansion of our business, and we do not expect to declare or pay any dividends in the foreseeable future. In addition, our ability to pay cash dividends on our capital stock could be restricted by the terms of any future debt financing arrangement.

Any future determination to pay dividends on our common stock will be at the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements and contractual restrictions. If we pay any dividends, including the fees and expenses payable thereunder, we will pay JDS holders to the same extent as holders of our common stock, subject to the terms of the August 31, 2017 trust agreement between the Company; Mizuho Securities Co., Ltd.; Mitsubishi UFJ Trust and Banking Corporation; and The Master Trust Bank of Japan, Ltd.

2020 Dividend Forecast

We do not expect to declare or pay cash dividends for the year ending December 31, 2020.

The Company adopted ASU No. 2016-02, Leases (Topic 842) on January 1, 2019 in the first quarter of fiscal 2019 under the modified retrospective transition method approach. In addition, the Company elected the short-term lease exception and excluded all leases that are twelve or less months in duration. Financial information for reporting periods beginning after January 1, 2019 are reported under the new standard, while comparative financial information has not been adjusted and continues to be reported in accordance with the previous standard. As a result, the Company recognized $0.8 million of lease assets and $0.9 million of lease liabilities, of which $0.2 million is recorded as non-current lease liabilities on the Company’s Consolidated Balance sheet as of January 1, 2019. Additionally, upon adoption, there was no impact on the Consolidated Statement of Operations and Comprehensive Income and no cumulative effect adjustment to retained earnings as of January 1, 2019.

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