----

----

| Utah                                                                    |   | 87-0398877                                       |
|-------------------------------------------------------------------------|--------|--------------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) |   | (I.R.S.      employeridentification      number) |

| 5225 Wiley Post Way, Suite 500Salt Lake City, Utah |   |  84116     |
|----------------------------------------------------|--------|-----------------|
| (Address      of principal executive offices)      |   | (Zip      Code) |

| N/A                                                                                          |
|----------------------------------------------------------------------------------------------|
| (Former      name, former address and former fiscal year, if changed since last      report) |

| Larger      Accelerated Filer ¨                                            | Accelerated      Filer ¨         |
|---------------------------------------------------------------------------------|---------------------------------------|
| Non-Accelerated      Filer x (Do      not check if a smaller reporting company) | Smaller      reporting company ¨ |

----

----

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|                                                       |                                                                                                                                                                  | Page Number |
|------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
|  Disclosure      Regarding Forward-Looking Statements | 3                                                                                                                                                                     |
|  PART      I – FINANCIAL INFORMATION            |
| Item      1                                                | Financial      Statements                                                                                                                                             |        |
|                                                       | Condensed      Consolidated Financial Statements                                                                                                                      |        |
|                                                       |  Condensed      Consolidated Balance Sheets as of March 31, 2008 and June 30,      2007                                                                          | 4           |
|                                                       |  Condensed      Consolidated Statements of Income for the three months ended March 31,      2008 and 2007 and the nine months ended March 31, 2008 and      2007 | 5           |
|                                                       |  Condensed      Consolidated Statements of Cash Flows for the nine months ended March 31,      2008 and 2007                                                     | 7           |
|                                                       |  Notes      to Condensed Consolidated Financial Statements                                                                                                       | 9           |
| Item      2                                                |  Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                           | 14          |
| Item      3                                                |  Quantitative      and Qualitative Disclosures About Market Risk                                                                                                 | 21          |
| Item      4                                                |  Controls      and Procedures                                                                                                                                    | 21          |
|  PART      II – OTHER INFORMATION               |
| Item      1                                                |  Legal      Proceedings                                                                                                                                          | 23          |
| Item      1A                                               |  Risk      Factors                                                                                                                                               | 23          |
| Item      2                                                |  Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                                | 28          |
| Item      3                                                |  Defaults      Upon Senior Securities                                                                                                                            | 28          |
| Item      4                                                |  Submission      of Matters to a Vote of Security Holders                                                                                                        | 28          |
| Item      5                                                |  Other      Information                                                                                                                                          | 29          |
| Item      6                                                |  Exhibits                                                                                                                                                        | 29          |
|  Signatures                                           |                                                                                                                                                                  | 29          |

----

----

| CLEARONE      COMMUNICATIONS, INC.                                                           |   |
|----------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS                                                   |   |
| (in      thousands of dollars, except per share amounts)                                     |   |
|                                                                                         |   | (unaudited) |   |   | (audited) |   |
|                                                                                         |   | March      31, |   |   | June      30, |   |
|                                                                                         |   | 2008 |   |   | 2007 |   |
| ASSETS                                                                                       |   |   |   |   |   |   |
| Current      assets:                                                                         |   |   |   |   |   |   |
| Cash      and cash equivalents                                                               |   | $ | 8,566 |   |   | $ | 2,782 |   |
| Marketable      securities                                                                   |   |   | 821 |   |   |   | 19,871 |   |
| Accounts      receivable, net of allowance for doubtful accounts                             |   |   | 7,005 |   |   |   | 8,025 |   |
|      of      $69 and $54, respectively                              |
| Deposit,      Bond for Preliminary Injunction                                                |   |   | 908 |   |   |   | 0 |   |
| Note      Receivable                                                                         |   |   | 85 |   |   |   | 163 |   |
| Inventories,      net                                                                        |   |   | 7,318 |   |   |   | 7,263 |   |
| Income      tax receivable                                                                   |   |   | 8 |   |   |   | 0 |   |
| Deferred      income taxes                                                                   |   |   | 203 |   |   |   | 0 |   |
| Prepaid      expenses                                                                        |   |   | 485 |   |   |   | 213 |   |
| Total      current assets                                                                    |   |   | 25,399 |   |   |   | 38,317 |   |
|                                                                                         |   |   |   |   |   |   |   |   |
| Long-term      Securities                                                                    |   |   | 11,486 |   |   |   | 0 |   |
| Property      and equipment, net                                                             |   |   | 2,678 |   |   |   | 2,694 |   |
| Intangible      Assets, net                                                                  |   |   | 49 |   |   |   | 0 |   |
| Note      Receiveable - long-term                                                            |   |   | 0 |   |   |   | 43 |   |
| Other      assets                                                                            |   |   | 9 |   |   |   | 9 |   |
| Total      assets                                                                            |   | $ | 39,621 |   |   | $ | 41,063 |   |
|                                                                                         |   |   |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                    |   |   |   |   |   |   |   |   |
| Current      liabilities:                                                                    |   |   |   |   |   |   |   |   |
| Accounts      payable                                                                        |   | $ | 1,924 |   |   | $ | 1,745 |   |
| Accrued      taxes                                                                           |   |   | 0 |   |   |   | 660 |   |
| Accrued      liabilities                                                                     |   |   | 2,372 |   |   |   | 1,874 |   |
| Deferred      product revenue                                                                |   |   | 4,206 |   |   |   | 4,872 |   |
| Total      current liabilities                                                               |   |   | 8,502 |   |   |   | 9,151 |   |
|                                                                                         |   |   |   |   |   |   |   |   |
| Deferred      rent                                                                           |   |   | 739 |   |   |   | 855 |   |
| Deferred      income taxes, net                                                              |   |   | 203 |   |   |   | 0 |   |
| Other      long-term liabilities                                                             |   |   | 1,040 |   |   |   | 619 |   |
| Total      liabilities                                                                       |   |   | 10,484 |   |   |   | 10,625 |   |
|                                                                                         |   |   |   |   |   |   |   |   |
| Shareholders'      equity:                                                                   |   |   |   |   |   |   |   |   |
| Common      stock, par value $0.001, 50,000,000 shares authorized,                           |   |   |   |   |   |   |   |   |
|    10,444,810      and 10,861,920 shares issued and outstanding, respectively |   |   | 10 |   |   |   | 11 |   |
| Additional      paid-in capital                                                              |   |   | 45,422 |   |   |   | 47,582 |   |
| Accumulated      other comprehensive loss                                                    |   |   | (764 | ) |   |   | 0 |   |
| Accumulated      deficit                                                                     |   |   | (15,531 | ) |   |   | (17,155 | ) |
| Total      shareholders' equity                                                              |   |   | 29,137 |   |   |   | 30,438 |   |
| Total      liabilities and shareholders' equity                                              |   | $ | 39,621 |   |   | $ | 41,063 |   |
| See      accompanying notes to condensed consolidated financial      statements              |   |

----

|                                                                            |   | Three Months Ended |   |   | Nine Months Ended |   |
|---------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                            |   | March      31,     |   |   | March      31,    |   |   | March      31, |   |   | March      31, |   |
|                                                                            |   | 2008               |   |   | 2007              |   |   | 2008 |   |   | 2007 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |
| Product      Revenue:                                                           |   | $                  | 9,163  |   |              | $      | 9,355 |   |   | $ | 29,393 |   |   | $ | 28,873 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of goods sold                                                         |   |               | 3,439  |   |              |   | 4,190 |   |   |   | 12,153 |   |   |   | 13,366 |   |
| Gross      profit                                                               |   |               | 5,724  |   |              |   | 5,165 |   |   |   | 17,240 |   |   |   | 15,507 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                        |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Sales      & Marketing                                                      |   |               | 1,640  |   |              |   | 2,004 |   |   |   | 4,820 |   |   |   | 5,711 |   |
| General      & administrative                                               |   |               | 1,183  |   |              |   | 763 |   |   |   | 5,276 |   |   |   | 2,260 |   |
| Research      and product development                                           |   |               | 1,701  |   |              |   | 1,848 |   |   |   | 5,134 |   |   |   | 5,782 |   |
| Total      operating expenses                                                   |   |               | 4,524  |   |              |   | 4,615 |   |   |   | 15,230 |   |   |   | 13,753 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                                           |   |               | 1,200  |   |              |   | 550 |   |   |   | 2,010 |   |   |   | 1,754 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other      income (expense), net:                                               |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                            |   |               | 283    |   |              |   | 572 |   |   |   | 893 |   |   |   | 1,163 |   |
| Other,      net                                                                 |   |               | (87    | )      |              |   | 5 |   |   |   | (45 | ) |   |   | 66 |   |
| Other      income, net:                                                         |   |               | 196    |   |              |   | 577 |   |   |   | 848 |   |   |   | 1,229 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income      from continuing operations before income taxes                      |   |               | 1,396  |   |              |   | 1,127 |   |   |   | 2,858 |   |   |   | 2,983 |   |
| (Provision)      for income taxes                                               |   |               | (335   | )      |              |   | (167 | ) |   |   | (955 | ) |   |   | (303 | ) |
| Income      from continuing operations                                          |   |               | 1,061  |   |              |   | 960 |   |   |   | 1,903 |   |   |   | 2,680 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued      operations:                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income      from discontinued operations                                        |   |               | -      |   |              |   | - |   |   |   | - |   |   |   | 495 |   |
| Gain      (loss) on disposal of discontinued operations                         |   |               | -      |   |              |   | 420 |   |   |   | 25 |   |   |   | (10 | ) |
| Income      tax provision                                                       |   |               | -      |   |              |   | (157 | ) |   |   | (9 | ) |   |   | (181 | ) |
| Income      from discontinued operations:                                       |   |               | -      |   |              |   | 263 |   |   |   | 16 |   |   |   | 304 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                 |   | $                  | 1,061  |   |              | $      | 1,223 |   |   | $ | 1,919 |   |   | $ | 2,984 |   |
|                                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements |   |

----

|                                                                            |   | Three Months Ended |       |   | Nine Months Ended |   |
|---------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                            |   | March      31,     |       |   | March      31,    |   |   | March      31, |   |   | March      31, |   |
|                                                                            |   | 2008               |       |   | 2007              |   |   | 2008 |   |   | 2007 |   |
|                                                                            |   |               |       |   |              |   |   |   |   |   |   |   |
| Basic      earnings per common share from continuing operations                 |   | $                  | 0.10       |   |              | $      | 0.09 |   |   | $ | 0.18 |   |   | $ | 0.23 |   |
| Diluted      earnings per common share from continuing operations               |   | $                  | 0.10       |   |              | $      | 0.09 |   |   | $ | 0.18 |   |   | $ | 0.23 |   |
|                                                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per common share from discontinued operations               |   | $                  | -          |   |              | $      | 0.02 |   |   | $ | 0.00 |   |   | $ | 0.03 |   |
| Diluted      earnings per common share from discontinued operations             |   | $                  | -          |   |              | $      | 0.02 |   |   | $ | - |   |   | $ | 0.03 |   |
|                                                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per common share                                            |   | $                  | 0.10       |   |              | $      | 0.11 |   |   | $ | 0.18 |   |   | $ | 0.25 |   |
| Diluted      earnings per common share                                          |   | $                  | 0.10       |   |              | $      | 0.11 |   |   | $ | 0.18 |   |   | $ | 0.25 |   |
|                                                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic      weighted average shares                                              |   |               | 10,651,352 |   |              |   | 10,994,607 |   |   |   | 10,818,205 |   |   |   | 11,705,853 |   |
| Diluted      weighted average shares                                            |   |               | 10,747,317 |   |              |   | 11,101,791 |   |   |   | 10,921,932 |   |   |   | 11,770,145 |   |
|                                                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements |   |

----

|                                                                            |   | Nine Months Ended |    |
|---------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                            |   | March      31,    |    |   | March      31, |   |
|                                                                            |   | 2008              |    |   | 2007 |   |
| Cash      flows from operating activities:                                      |   |              |    |   |   |   |
| Net      income from continuing operations                                      |   | $                 | 1,903   |   |   | $ | 2,680 |   |
| Adjustments      to reconcile net income from continuing operations             |   |              |    |   |   |   |   |   |
|   to      net cash provided by (used in) operations:                  |   |              |    |   |   |   |   |   |
| Depreciation      and amortization expense                                      |   |              | 580     |   |   |   | 678 |   |
| Stock-based      compensation                                                   |   |              | 551     |   |   |   | 658 |   |
| (Recovery)      Write-off of inventory                                          |   |              | (34     | ) |   |   | 499 |   |
| Loss      on disposal of assets and fixed assets write-offs                     |   |              | 4       |   |   |   | 1 |   |
| Provision      for doubtful accounts                                            |   |              | 15      |   |   |   | 1 |   |
| Accounts      receivable                                                        |   |              | 837     |   |   |   | 936 |   |
| Deposit      - Bond                                                             |   |              | (908    | ) |   |   | - |   |
| Note      receivable - Ken-A-Vision                                             |   |              | 121     |   |   |   | (245 | ) |
| Inventories                                                                     |   |              | (21     | ) |   |   | (838 | ) |
| Other      assets                                                               |   |              | (272    | ) |   |   | (43 | ) |
| Accounts      payable                                                           |   |              | 348     |   |   |   | (651 | ) |
| Accrued      liabilities                                                        |   |              | 497     |   |   |   | (737 | ) |
| Income      Taxes                                                               |   |              | (542    | ) |   |   | 3,696 |   |
| Other      liabilities                                                          |   |              | -       |   |   |   | (55 | ) |
| Deferred      product revenue                                                   |   |              | (666    | ) |   |   | (760 | ) |
| Net      cash provided by continuing operating activities                       |   |              | 2,413   |   |   |   | 5,820 |   |
| Net      cash provided by discontinued operating activities                     |   |              | -       |   |   |   | 47 |   |
| Net      cash provided by operating activities                                  |   |              | 2,413   |   |   |   | 5,867 |   |
|                                                                            |   |              |    |   |   |   |   |   |
| Cash      flows from investing activities:                                      |   |              |    |   |   |   |   |   |
| Purchase      of property and equipment                                         |   |              | (684    | ) |   |   | (732 | ) |
| Purchase      of intellectual property                                          |   |              | (49     | ) |   |   | - |   |
| Proceeds      from the sale of property and equipment                           |   |              | -       |   |   |   | 60 |   |
| Purchase      of marketable securities                                          |   |              | (10,570 | ) |   |   | (22,650 | ) |
| Sale      of marketable securities                                              |   |              | 17,370  |   |   |   | 22,550 |   |
| Net      cash provided by (used in) continuing investing activities             |   |              | 6,067   |   |   |   | (772 | ) |
| Net      cash provided by discontinued investing activities                     |   |              | 16      |   |   |   | 822 |   |
| Net      cash provided by (used in) investing activities                        |   |              | 6,083   |   |   |   | 50 |   |
|                                                                            |   |              |    |   |   |   |   |   |
| Cash      flows from financing activities:                                      |   |              |    |   |   |   |   |   |
| Proceeds      from common stock                                                 |   |              | 591     |   |   |   | 36 |   |
| Purchase      and retirement of stock                                           |   |              | (3,370  | ) |   |   | (5,881 | ) |
| Tax      Benefit attributable to exercise of stock options                      |   |              | 67      |   |   |   | - |   |
| Net      cash used in financing activities                                      |   |              | (2,712  | ) |   |   | (5,845 | ) |
|                                                                            |   |              |    |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                  |   |              | 5,784   |   |   |   | 72 |   |
| Cash      and cash equivalents at the beginning of the period                   |   |              | 2,782   |   |   |   | 1,240 |   |
| Cash      and cash equivalents at the end of the period                         |   | $                 | 8,566   |   |   | $ | 1,312 |   |
|                                                                            |   |              |    |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements |   |

----

|                                                                                                                 |   | Nine Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                 |   | March      31,    |   |   | March      31, |   |
|                                                                                                                 |   | 2008              |   |   | 2007 |   |
| Supplemental      disclosure of cash flow information:                                                               |   |              |   |   |   |   |
| Cash      paid for interest                                                                                          |   | $                 | 2      |   |   | $ | 1 |   |
| Cash      paid (received) for income taxes                                                                           |   | $                 | 1,439  |   |   | $ | (3,176 | ) |
|                                                                                                                 |   |              |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing activities:                                                       |   |              |   |   |   |   |   |   |
| Exchanged      accounts receivable from a vendor with accounts payable to same      vendor                           |   | $                 | 168    |   |   | $ | - |   |
| Increase      in accumulated deficit and income tax liability as a result of the      adoption of FIN48 (see Note 4) |   | $                 | 295    |   |   | $ | - |   |
| Lease      incentive for Edgewater leasehold improvements                                                            |   | $                 | -      |   |   | $ | 1,049 |   |
|                                                                                                                 |   |              |   |   |   |   |   |   |
|                                                                                                                 |   |              |   |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements                                      |   |

----

|                     |   | March 31, |   |   | June 30, |   |
|--------------------------|--------|-----------|--------|--------|----------|--------|
|                     |   | 2008      |   |   | 2007     |   |
|                     |   |      |   |   |     |   |
| Raw      materials       |   | $         | 135    |   |     | $      | 453 |   |
| Finished      goods      |   |      | 5,426  |   |     |   | 4,695 |   |
| Consigned      inventory |   |      | 1,757  |   |     |   | 2,115 |   |
| Total      inventory     |   | $         | 7,318  |   |     | $      | 7,263 |   |

----

----

| Description      of Securities |   | Total      - All Less than 12 Months |   |
|--------------------------------|--------|--------------------------------------|--------|
|                           |   | Fair      Value                      |   |   | Unrealized      Losses |   |
| Auction      Rate Securities   |   |                                 | 11,486 |   |   |   | 764 |   |

----

|                                                   |   |   | 3Q      2008   |   |   |   | 3Q      2007 |   |
|--------------------------------------------------------|--------|--------|--------------------------|--------|--------|--------|--------------|--------|
| Balance,      beginning of period                      |   | $      | -                        |   |   | $      | -            |   |
| Unrealized      holding (losses), in equity securities |   |   | (764                     | )      |   |   | -            |   |
| Balance,      end of period                            |   | $      | (764                     | )      |   | $      | -            |   |

|                                                                       |   | Three Months Ended |   |   | Nine Months Ended |   |
|----------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                       |   | March      31,     |   |   | March      31,    |   |   | March      31, |   |   | March      31, |   |
|                                                                       |   | 2008               |   |   | 2007              |   |   | 2008 |   |   | 2007 |   |
| Net      income                                                            |   | $                  | 1,061  |   |              | $      | 1,223 |   |   | $ | 1,919 |   |   | $ | 2,984 |   |
| Other      comprehensive income (loss):                                    |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      gain (loss) on available-for-sale investment, net of taxes |   |               | (764   | )      |              |   | 0 |   |   |   | (764 | ) |   |   | 0 |   |
|                                                                       |   | $                  | 297    |   |              | $      | 1,223 |   |   | $ | 1,155 |   |   | $ | 2,984 |   |

----

----

| Item      2. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------|

----

|                    |   | Deferred Revenue |   |   | Deferred Cost of Goods Sold |   |   | Deferred Gross Profit |   |
|-------------------------|--------|------------------|--------|--------|-----------------------------|--------|--------|-----------------------|--------|
|                    |   |             |   |   |                        |   |   |                  |   |
| March      31, 2008     |   | $                | 4,206  |   |                        | $      | 1,757  |                  |   | $ | 2,449 |   |
| December      31, 2007  |   |             | 4,980  |   |                        |   | 1,859  |                  |   |   | 3,121 |   |
| September      30, 2007 |   |             | 5,875  |   |                        |   | 2,149  |                  |   |   | 3,726 |   |
| June      30, 2007      |   |             | 4,872  |   |                        |   | 2,115  |                  |   |   | 2,757 |   |
| March      31, 2007     |   |             | 5,111  |   |                        |   | 2,265  |                  |   |   | 2,846 |   |
| December      31, 2006  |   |             | 4,711  |   |                        |   | 2,166  |                  |   |   | 2,545 |   |
| September      30, 2006 |   |             | 5,249  |   |                        |   | 2,541  |                  |   |   | 2,708 |   |
| June      30, 2006      |   |             | 5,871  |   |                        |   | 2,817  |                  |   |   | 3,054 |   |

| ·   | Significant      underperformance relative to projected future operating      results; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Significant      changes in the manner of our use of the acquired assets or the strategy      for our overall business; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | Significant      negative industry or economictrends. |
|--------------------|-------------------------------------------------------|

----

----

----

| CLEARONE      COMMUNICATIONS, INC.                       |   |
|----------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS     |   |
| (Unaudited)                                              |   |
| (in      thousands of dollars, except per share amounts) |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Three Months Ended |   |   | Nine Months Ended |   |
|                                                     |   | March      31, |   |   |   |   |   | March      31, |   |   |   |   |   | March      31, |   |   |   |   |   | March      31, |   |   |   |   |
|                                                     |   | 2008 |   |   |   |   |   | 2007 |   |   |   |   |   | 2008 |   |   |   |   |   | 2007 |   |   |   |   |
|                                                     |   |   |   |   | %      of Revenue |   |   |   |   |   | %      of Revenue |   |   |   |   |   | %      of Revenue |   |   |   |   |   | %      of Revenue |   |
| Product      Revenue:                                    |   | $ | 9,163 |   |   |   | 100% |   |   | $ | 9,355 |   |   |   | 100% |   |   | $ | 29,393 |   |   |   | 100% |   |   | $ | 28,873 |   |   |   | 100% |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of goods sold                                  |   |   | 3,439 |   |   |   | 38% |   |   |   | 4,190 |   |   |   | 45% |   |   |   | 12,153 |   |   |   | 41% |   |   |   | 13,366 |   |   |   | 46% |   |
| Gross      profit                                        |   |   | 5,724 |   |   |   | 62% |   |   |   | 5,165 |   |   |   | 55% |   |   |   | 17,240 |   |   |   | 59% |   |   |   | 15,507 |   |   |   | 54% |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      & Marketing                               |   |   | 1,640 |   |   |   | 18% |   |   |   | 2,004 |   |   |   | 21% |   |   |   | 4,820 |   |   |   | 16% |   |   |   | 5,711 |   |   |   | 20% |   |
| General      & administrative                        |   |   | 1,183 |   |   |   | 13% |   |   |   | 763 |   |   |   | 8% |   |   |   | 5,276 |   |   |   | 18% |   |   |   | 2,260 |   |   |   | 8% |   |
| Research      and product development                    |   |   | 1,701 |   |   |   | 19% |   |   |   | 1,848 |   |   |   | 20% |   |   |   | 5,134 |   |   |   | 17% |   |   |   | 5,782 |   |   |   | 20% |   |
| Total      operating expenses                            |   |   | 4,524 |   |   |   | 49% |   |   |   | 4,615 |   |   |   | 49% |   |   |   | 15,230 |   |   |   | 52% |   |   |   | 13,753 |   |   |   | 48% |   |

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| ·   | meeting      required specifications and regulatory  standards; |
|--------------------|-----------------------------------------------------------------|

| ·   | meeting      market expectations forperformance; |
|--------------------|--------------------------------------------------|

| ·   | hiring      and keeping a sufficient number of skilled  developers; |
|--------------------|---------------------------------------------------------------------|

| ·   | obtaining      prototype products at anticipated costlevels; |
|--------------------|--------------------------------------------------------------|

| ·   | having      the ability to identify problems or product defects in the development      cycle; and |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | achieving      necessary manufacturingefficiencies. |
|--------------------|-----------------------------------------------------|

----

----

| ·   | unexpected      changes in, or the imposition of, additional legislative or regulatory      requirements; |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | unique      environmental regulations; |
|--------------------|----------------------------------------|

| ·   | fluctuating      exchange rates; |
|--------------------|----------------------------------|

| ·   | tariffs      and other barriers; |
|--------------------|----------------------------------|

| ·   | difficulties      in staffing and managing foreign sales  operations; |
|--------------------|-----------------------------------------------------------------------|

| ·   | import      and export restrictions; |
|--------------------|--------------------------------------|

| ·   | greater      difficulties in accounts receivable collection and longer payment      cycles; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | potentially      adverse tax consequences; |
|--------------------|--------------------------------------------|

| ·   | potential      hostilities and changes in diplomatic and trade relationships;      and |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | disruption      in services due to natural disaster, economic or political difficulties,      quarantines, transportation, or other restrictions associated with      infectious diseases. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | statements      or changes in opinions, ratings, or earnings estimates made by brokerage      firms or industry analysts relating to the market in which we do business      or relating to us specifically; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | disparity      between our reported results and the projections of    analysts; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | the      shift in sales mix of products that we currently sell to a sales mix of      lower-gross profit productofferings; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | the      level and mix of inventory levels held by our  distributors; |
|--------------------|-----------------------------------------------------------------------|

| ·   | the      announcement of new products or product enhancements by us or our      competitors; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | technological      innovations by us or ourcompetitors; |
|--------------------|---------------------------------------------------------|

| ·   | success      in meeting targeted availability dates for new or redesigned      products; |
|--------------------|------------------------------------------------------------------------------------------|

----

| ·   | the      ability to profitably and efficiently manage our supplies of products and      key components; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | the      ability to maintain profitable relationships with our      customers; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | the      ability to maintain an appropriate cost  structure; |
|--------------------|--------------------------------------------------------------|

| ·   | quarterly      variations in our results ofoperations; |
|--------------------|--------------------------------------------------------|

| ·   | general      consumer confidence or general market conditions or market conditions      specific to technology industries; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | domestic      and international economicconditions; |
|--------------------|-----------------------------------------------------|

| ·   | the      adoption of the new accounting standard, SFAS No. 123R, “Share-Based      Payments,” which requires us to record compensation expense for certain      options issued before July 1, 2005 and for all options issued or modified      after June 30, 2005; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to report financial information in a timely manner;      and |
|--------------------|-------------------------------------------------------------------------------|

| ·   | the      markets in which our stock istraded. |
|--------------------|-----------------------------------------------|

| Period                                          | Total      Number of Shares Purchased | Average      Price Paid per Share | Total      Number of Shares Purchased as Part of Publicly Announced Plans or      Programs | Maximum      Number (or Approximate Dollar Value) of Shares that May be Purchased Under      the Plans or Programs (1) |
|-------------------------------------------------|---------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| January      1, 2008 – January 31, 2008   | 61,454                                | $4.94                             | 61,454                                                                                     | $1,658,000                                                                                                             |
| February      1, 2008 – February 28, 2008 | 121,677                               | $5.16                             | 121,677                                                                                    | $1,030,000                                                                                                             |
| March      1, 2008 – March 31, 2008       | 160,427                               | $4.83                             | 160,427                                                                                    | $255,000                                                                                                               |
| Total                                           | 343,558                               |                              | 343,558                                                                                    |                                                                                                                   |

| (1)   | On      August 30, 2007, the Company announced that its Board of Directors had      approved a stock buy-back program to purchase up $3,625,000 of the      Company’s common stock over the next 12 months in open market and private      block transactions. All repurchased shares will be immediately retired.      The stock buy-back program will expire on August 30,  2008. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit | SEC      Ref. |                                                      |             |
|---------|---------------|-----------------------------------------------------------|------------------|
| No.     |  No.     | Title of Document                                         | Location         |
| 31.1    | 31            | Section      302 Certification of Chief Executive Officer | This      filing |
| 31.2    | 31            | Section      302 Certification of Chief Financial Officer | This      filing |
| 32.1    | 32            | Section      906 Certification of Chief Executive Officer | This      filing |
| 32.2    | 32            | Section      906 Certification of Chief Financial Officer | This      filing |

|              | CLEARONE      COMMUNICATIONS, INC. |
|-------------------|------------------------------------|
|              |                               |   |
|              |                               |   |
|              |                               |   |
| May      13, 2008 | By:                                | /s/ Zeynep Hakimoglu |
|              |                               | Zeynep      Hakimoglu |
|              |                               | President      and Chief Executive Officer |
|              |                               | (Principal      Executive Officer) |
|              |                               |   |
|              |                               |   |
|              |                               |   |
| May      13, 2008 | By:                                | /s/ Greg A. LeClaire |
|              |                               | Greg      A. LeClaire |
|              |                               | Chief      Financial Officer |
|              |                               | (Principal      Financial and Accounting Officer) |