Exhibit 99.1

Financial Results for the Year Ended December 31, 2020 (Unaudited)

February 12, 2021

(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 ¥103.50 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, 2020. This rate is also used for amounts disclosed in Japanese yen for prior periods in order to exclude the impact from the change in foreign currency exchange rates when comparing financial results in the current period to those in the prior periods, which is permitted according to the current disclosure requirements for Tanshin in Japan.

The Company’s comprehensive income for the year ended December 31, 2020 and 2019 was $3.4 million (¥351.7 million, 55.9%) and $2.2 million (¥225.5 million, 15.6%), respectively. The Company’s non-GAAP operating income for the year ended December 31, 2020 was $5.2 million (¥536.5 million) based on the exclusion of stock-based compensation of $1.5 million (¥153.8 million). The Company’s non-GAAP net income for the year ended December 31, 2020 was $4.6 million (¥477.1 million) based on the exclusion of stock-based compensation of $1.5 million (¥153.8 million) and the relating income tax impact based on a 14.66% effective tax rate. The Company’s non-GAAP operating income for the year ended December 31, 2019 was $3.8 million (¥394.3 million) based on the exclusion of stock-based compensation of $1.4 million (¥146.5 million). The Company’s non-GAAP net income for the year ended December 31, 2019 was $3.5 million (¥358.2 million) based on the exclusion of stock-based compensation of $1.4 million (¥146.5 million) and the relating income tax impact based on a 10.44% 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 Earnings Per Share, or EPS, for the year ending December 31, 2021 was computed using a forecasted weighted average shares outstanding for the year ending December 31, 2021. The forecasted non-GAAP figures exclude stock-based compensation of $1.3 million (¥133.4 million) net of the relating income tax impact based on a 17.05% effective tax rate.

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

Audit Procedures:

This Tanshin is not in the scope of 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, 2021. 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, or JDSs, is scheduled for early June 2021 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 ¥103.50 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, 2020. This rate is also used for amounts disclosed in Japanese yen for prior periods in order to exclude the impact from the change in foreign currency exchange rates when comparing financial results in the current period to those in the prior periods, which is permitted according to the current disclosure requirements for Tanshin in Japan. 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 $2.3 million (¥239 million), or 7.2% for the year ended December 31, 2020 as compared to the year ended December 31, 2019. This was mainly due to a $7.4 million (¥764 million) increase in automotive market revenue resulting from a 104% increase in volume of shipments offset by a decrease in average selling price attributable to product mix. This increase in automotive market revenue was partially offset by a $5.1 million (¥525 million) decrease in security surveillance market revenue due to a 22% decrease in volume of shipments combined with a decrease in average selling price attributable to 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.  

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, 2020 and 2019:

Cost of revenue and gross margin

Cost of revenue decreased $0.3 million (¥26 million), or 1.6%, for the year ended December 31, 2020 as compared to the year ended December 31, 2019. Gross margin increased to 53% for the year ended December 31, 2020 from 49% for the year ended December 31, 2019. Cost of revenue decreased mainly due to a $1.1 million (¥110 million) decrease as a result of a decrease in inventory write-down, increased utilization of previously reserved inventory, decreased warranty expense, and product mix, partially offset by a $0.8 million (¥83 million) increase in cost of goods sold primarily driven by a 16% increase in volume of shipments. Gross margin was positively impacted by these changes.

We expect gross margins to fluctuate in future periods due to changes in customer and product mix, average unit selling prices, manufacturing costs, adjustments to inventory, if any, and end market product demand.

Research and development expense

Research and development expense increased $0.8 million (¥80 million), or 12.0%, for the year ended December 31, 2020 as compared to the year ended December 31, 2019. This increase was primarily due to a $1.0 million (¥108 million) increase in tape-out expenses associated with the development of new products, partially offset by a $0.4 million (¥44 million) decrease in external design fees and software costs.

Selling, general and administrative expense

Selling, general and administrative expense increased by $0.5 million (¥51 million), or 7.2%, for the year ended December 31, 2020 as compared to the year ended December 31, 2019. This increase was primarily due to a $0.8 million

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(¥80 million) increase mainly in personnel costs and professional service fees because of additional administrative efforts with operating as a U.S. company that is publicly traded in Japan, insurance and rent, partially offset by a $0.3 million (¥29 million) decrease in marketing activities due to lower trade show costs and lower travel expenses.

Other income - net

Other income - net for the year ended December 31, 2020 increased by $0.2 million (¥17 million), or 304% as compared to the year ended December 31, 2019 primarily due to the net interest income from investments.

Provision for income taxes

The provision for income taxes increased by $0.3 million (¥33 million), or 125.1%, for the year ended December 31, 2020 as compared to the year ended December 31, 2019. 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 $1.1 million (¥119 million), or 52.3%, for the year ended December 31, 2020 as compared to the year ended December 31, 2019.

Our cash, cash equivalents and short-term investments as of December 31, 2020 were $29.7 million (¥3,069 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, 2020, net cash provided by operating activities was $2.7 million (¥282 million), primarily due to net income of $3.3 million (¥346 million) and non-cash charges of $2.9 million (¥302 million) primarily driven by stock-based compensation, noncash lease expense, depreciation and amortization, and provision for excess inventories, partially offset by cash outflow from the net change in operating assets and liabilities of $3.5 million (¥365 million). The cash outflow from the net change in operating assets and liabilities was primarily due to a $3.0 million (¥312 million) cash outflow in inventory due to unit production exceeding product sales during the period, a $0.6 million (¥66 million) cash outflow in customer deposits due to timing of customer payments and a $0.6 million (¥57 million) cash outflow in other liabilities driven by the change in operating lease liabilities, partially offset by $0.5 million (¥57 million) cash inflow in accrued expenses and $0.3 million (¥34 million) cash inflow in prepaid expenses due to timing of payments to vendors.

Investing Activities

During the year ended December 31, 2020, cash used in investing activities was $2.1 million (¥217 million) primarily due to a $12.6 million (¥1,303 million) cash outflow driven by the purchase of debt securities, and a $0.5 million (¥53 million) cash outflow due to purchases of property and equipment, partially offset by a $11.0 million (¥1,139 million) cash inflow due to proceeds from maturities of debt securities.

Financing Activities

During the year ended December 31, 2020, cash provided by financing activities was $0.1 million (¥6 million) primarily due to net proceeds from the exercise of stock options, partially offset by payments for shares withheld for tax withholdings on vesting of restricted stock units.

The following assumptions are used for the Forecasted Consolidated Results of Operations for the year ending December 31, 2021.

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As a result of careful consideration of the current worldwide capacity constrains in semiconductor manufacturing, we are forecasting $45.9 million (¥4,756 million) of revenue for the year ending December 31, 2021, an increase of 33.8% from $34.3 million (¥3,554 million) in 2020. Although higher revenue could possibly be achieved if the Company could secure additional manufacturing capacity, this would likely come with a further increase in cost that could result in our raising our prices to our customers.  Our projected revenue for the year ending December 31, 2021 does not include revenue from the newly developed CMOS Image Sensor or the Door Phone products due to the worldwide production capacity constraints in semiconductor manufacturing.

In the automotive market, we expect that our revenue for the year ending December 31, 2021 will increase to approximately $20.4 million (¥2,111 million) from $18.2 million (¥1,887 million) in the current year, or 12.1%, primarily as a result of multiple new design-wins obtained from manufacturers in prior quarters migrating to volume production.

As manufacturers begin to recover from the market downturn, we expect continued increase in our revenue within the automotive market if worldwide capacity constrains in semiconductor manufacturing does not intensify.

In the security surveillance market, we expect that our revenue for the year ending December 31, 2021 will increase to approximately $25.5 million (¥2,639 million) from $16.1 million (¥1,667 million) in the current year, or 58.4%, primarily as a result of increased revenue from our image signaling processor products as a result of more derivative projects of customers migrating to production and revenue from our receiver products stabilizing. Although the rate of growth in the analog camera market is slowing, potentially due to the impact of the COVID-19 pandemic, we are gradually increasing our market share. We expect to begin shipping samples of the newly developed CMOS Image Sensor product in 2021, however, quantities may be limited due to the current worldwide production capacity constraints in semiconductor manufacturing.

Since it is difficult to predict the future spread of COVID-19 and the timing of its cessation, the Company has calculated the forecast figures based on the assumption that COVID-19 will continue to have the same level of impact during fiscal 2021 as it does at present.

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.

2021 Dividend Forecast

We do not expect to declare or pay cash dividends for the year ending December 31, 2021.

None.

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