----

----

| 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) |

| Large      accelerated Filer ¨                                          | Accelerated      filer ¨    |
|------------------------------------------------------------------------------|---------------------------------------|
| Non-accelerated      filer x(Do not check if smaller reporting      company) | Smaller      reporting company ¨ |

| Common      StockTitle      of Class | 8,928,060Number      of SharesOutstanding      at February 5, 2009 |
|--------------------------------------|--------------------------------------------------------------------|

----

----

----

|                                            |                                                                                                                                                            | Page      Number |
|-------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
|  PART      I – FINANCIAL INFORMATION |
| Item      1                                     |  Consolidated      Financial Statements:                                                                                                                   |             |
|                                            |  Consolidated      Balance Sheets as of December 31, 2008 and June 30, 2008                                                                                | 1                |
|                                            |  Consolidated      Statements of Operations for the three months ended December 31, 2008 and      2007 and the six months ended December 31, 2008 and 2007 | 2                |
|                                            |  Consolidated      Statements of Cash Flows for the six months ended December 31, 2008 and      2007                                                       | 4                |
|                                            |  Notes      to Condensed Consolidated Financial Statements                                                                                                 | 6                |
| Item      2                                     |  Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                     | 11               |
| Item      3                                     |  Quantitative      and Qualitative Disclosures About Market Risk                                                                                           | 17               |
| Item      4                                     |  Controls      and Procedures                                                                                                                              | 17               |
|  PART      II – OTHER INFORMATION    |
| Item      1                                     |  Legal      Proceedings                                                                                                                                    | 18               |
| Item      1A                                    |  Risk      Factors                                                                                                                                         | 20               |
| Item      2                                     |  Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                          | 20               |
| Item      3                                     |  Defaults      Upon Senior Securities                                                                                                                      | 20               |
| Item      4                                     |  Submission      of Matters to a Vote of Security Holders                                                                                                  | 21               |
| Item      5                                     |  Other      Information                                                                                                                                    | 21               |
| Item      6                                     |  Exhibits                                                                                                                                                  | 21               |
|  Signatures                                |                                                                                                                                                            | 22               |

----

| CLEARONE      COMMUNICATIONS, INC. AND SUBSIDIARIES                                         |   |              |    |   |          |   |
|---------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                                            |   |              |    |   |          |   |
| (in      thousands of dollars)                                                              |   |              |    |   |          |   |
|                                                                                        |   |              |    |   |          |   |
|                                                                                        |   | (unaudited)       |    |   | (audited)     |   |
|                                                                                        |   | December      31, |    |   | June      30, |   |
|                                                                                        |   | 2008              |    |   | 2008          |   |
| ASSETS                                                                                      |   |              |    |   |          |   |
| Current      assets:                                                                        |   |              |    |   |          |   |
| Cash      and cash equivalents                                                              |   | $                 | 2,323   |   |          | $      | 3,327 |   |
| Marketable      securities                                                                  |   |              | 9,628   |   |          |   | 5,922 |   |
| Accounts      receivable, net of allowance for doubtful accounts                            |   |              |    |   |          |   |   |   |
|      of      $64 and $87, respectively                             |   |              | 7,532   |   |          |   | 7,238 |   |
| Deposit,      bond for preliminary injunction                                               |   |              | 0       |   |          |   | 908 |   |
| Note      receivable                                                                        |   |              | 14      |   |          |   | 43 |   |
| Inventories,      net                                                                       |   |              | 12,859  |   |          |   | 7,799 |   |
| Income      tax receivable                                                                  |   |              | 592     |   |          |   | 0 |   |
| Deferred      income taxes                                                                  |   |              | 3,124   |   |          |   | 2,828 |   |
| Prepaid      expenses                                                                       |   |              | 627     |   |          |   | 820 |   |
| Total      current assets                                                                   |   |              | 36,699  |   |          |   | 28,885 |   |
|                                                                                        |   |              |    |   |          |   |   |   |
| Long-term      marketable securities                                                        |   |              | 0       |   |          |   | 11,168 |   |
| Property      and equipment, net                                                            |   |              | 2,768   |   |          |   | 2,554 |   |
| Intangible      assets, net                                                                 |   |              | 42      |   |          |   | 47 |   |
| Note      Receiveable - long-term                                                           |   |              | 0       |   |          |   | 0 |   |
| Long-term      deferred tax asset                                                           |   |              | 724     |   |          |   | 1,639 |   |
| Other      assets                                                                           |   |              | 21      |   |          |   | 7 |   |
| Deferred      income taxes                                                                  |   |              | 0       |   |          |   | 0 |   |
| Total      assets                                                                           |   | $                 | 40,254  |   |          | $      | 44,300 |   |
|                                                                                        |   |              |    |   |          |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                   |   |              |    |   |          |   |   |   |
| Current      liabilities:                                                                   |   |              |    |   |          |   |   |   |
| Accounts      payable                                                                       |   | $                 | 1,736   |   |          | $      | 2,187 |   |
| Accrued      taxes                                                                          |   |              | 0       |   |          |   | 72 |   |
| Accrued      liabilities                                                                    |   |              | 3,463   |   |          |   | 3,600 |   |
| Deferred      product revenue                                                               |   |              | 4,881   |   |          |   | 4,547 |   |
| Total      current liabilities                                                              |   |              | 10,080  |   |          |   | 10,406 |   |
|                                                                                        |   |              |    |   |          |   |   |   |
| Deferred      rent                                                                          |   |              | 622     |   |          |   | 700 |   |
| Deferred      income taxes, net                                                             |   |              | 0       |   |          |   | 0 |   |
| Other      long-term liabilities                                                            |   |              | 1,372   |   |          |   | 1,054 |   |
| Total      liabilities                                                                      |   |              | 12,074  |   |          |   | 12,160 |   |
|                                                                                        |   |              |    |   |          |   |   |   |
| Shareholders'      equity:                                                                  |   |              |    |   |          |   |   |   |
| Common      stock, par value $0.001, 50,000,000 shares authorized,                          |   |              |    |   |          |   |   |   |
|    8,891,756      and 10,228,902 shares issued and outstanding, respectively |   |              | 9       |   |          |   | 10 |   |
| Additional      paid-in capital                                                             |   |              | 38,191  |   |          |   | 44,618 |   |
| Accumulated      other comprehensive income (loss)                                          |   |              | 36      |   |          |   | (694 | ) |
| Accumulated      deficit                                                                    |   |              | (10,056 | )      |          |   | (11,794 | ) |
| Total      shareholders' equity                                                             |   |              | 28,180  |   |          |   | 32,140 |   |
| Total      liabilities and shareholders' equity                                             |   | $                 | 40,254  |   |          | $      | 44,300 |   |
| See      accompanying notes to condensed consolidated financial      statements             |   |              |    |   |          |

----

| CLEARONE      COMMUNICATIONS, INC. AND SUBSIDIARIES                             |   |
|---------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS                                      |   |
| (in      thousands of dollars, except per share amounts)                        |   |
| (unaudited)                                                                     |   |
|                                                                            |   | Three      Months EndedDecember      31, |   |   | Six      Months EndedDecember      31, |   |
|                                                                            |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                         |   | $ | 9,970 |   |   | $ | 10,787 |   |   | $ | 20,229 |   |   | $ | 20,229 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of goods sold                                                         |   |   | 4,168 |   |   |   | 4,414 |   |   |   | 7,794 |   |   |   | 8,714 |   |
| Gross      profit                                                               |   |   | 5,802 |   |   |   | 6,373 |   |   |   | 12,435 |   |   |   | 11,515 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      & Marketing                                                      |   |   | 1,934 |   |   |   | 1,578 |   |   |   | 3,911 |   |   |   | 3,180 |   |
| Research      and product development                                           |   |   | 1,844 |   |   |   | 1,678 |   |   |   | 3,620 |   |   |   | 3,433 |   |
| General      and administrative                                                 |   |   | 1,257 |   |   |   | 1,198 |   |   |   | 2,329 |   |   |   | 4,093 |   |
| Total      operating expenses                                                   |   |   | 5,035 |   |   |   | 4,454 |   |   |   | 9,860 |   |   |   | 10,706 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                                           |   |   | 767 |   |   |   | 1,919 |   |   |   | 2,575 |   |   |   | 809 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      other income, net                                                    |   |   | 96 |   |   |   | 311 |   |   |   | 161 |   |   |   | 653 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from continuing operations before income taxes                      |   |   | 863 |   |   |   | 2,230 |   |   |   | 2,736 |   |   |   | 1,462 |   |
| (Provision)      for income taxes                                               |   |   | (259 | ) |   |   | (449 | ) |   |   | (998 | ) |   |   | (620 | ) |
| Income      from continuing operations                                          |   |   | 604 |   |   |   | 1,781 |   |   |   | 1,738 |   |   |   | 842 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from discontinued operations                                        |   |   | 0 |   |   |   | 1 |   |   |   | 0 |   |   |   | 16 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                 |   | $ | 604 |   |   | $ | 1,782 |   |   | $ | 1,738 |   |   | $ | 858 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements |   |

----

| CLEARONE      COMMUNICATIONS, INC. AND SUBSIDIARIES                             |   |
|---------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS                                      |   |
| (in      thousands of dollars, except per share amounts)                        |   |
| (unaudited)                                                                     |   |
|                                                                            |   | Three      Months EndedDecember      31, |   |   | Six      Months EndedDecember      31, |   |
|                                                                            |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per common share from continuing operations                 |   | $ | 0.07 |   |   | $ | 0.16 |   |   | $ | 0.18 |   |   | $ | 0.08 |   |
| Diluted      earnings per common share from continuing operations               |   | $ | 0.07 |   |   | $ | 0.16 |   |   | $ | 0.18 |   |   | $ | 0.08 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per common share from discontinued operations               |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Diluted      earnigns per common share from discontinued operations             |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per common share                                            |   | $ | 0.07 |   |   | $ | 0.16 |   |   | $ | 0.18 |   |   | $ | 0.08 |   |
| Diluted      earnings per comons share                                          |   | $ | 0.07 |   |   | $ | 0.16 |   |   | $ | 0.18 |   |   | $ | 0.08 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      weighted average shares outstanding                                  |   |   | 8,889,974 |   |   |   | 10,840,193 |   |   |   | 9,501,381 |   |   |   | 10,900,725 |   |
| Diluted      weighted average shares outstanding                                |   |   | 8,989,283 |   |   |   | 10,941,491 |   |   |   | 9,600,291 |   |   |   | 11,012,239 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements |   |

----

|                                                                            |   | Six Months Ended  |   |
|---------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                            |   | December      31, |   |   | December      31, |   |
|                                                                            |   | 2008              |   |   | 2007 |   |
| Cash      flows from operating activities:                                      |   |              |   |   |   |   |
| Net      income from continuing operations                                      |   | $                 | 1,738  |   |   | $ | 842 |   |
| Adjustments      to reconcile net income from continuing operations             |   |              |   |   |   |
| to      net cash (used in) provided by operating activities:                    |   |              |   |   |   |
| Depreciation      and amortization expense                                      |   |              | 353    |   |   |   | 384 |   |
| Stock-based      compensation                                                   |   |              | 325    |   |   |   | 372 |   |
| Write-off      of inventory                                                     |   |              | 374    |   |   |   | 406 |   |
| (Gain)      loss on disposal of assets and fixed assets write-offs              |   |              | (5     | ) |   |   | 4 |   |
| Provision      for (recovery of) doubtful accounts                              |   |              | (22    | ) |   |   | 6 |   |
| Changes      in operating assets and liabilities:                               |   |              |   |   |   |   |   |   |
| Accounts      receivable                                                        |   |              | (718   | ) |   |   | 61 |   |
| Deposit      - Bond                                                             |   |              | 908    |   |   |   | (908 | ) |
| Deferred      taxes                                                             |   |              | 186    |   |   |   | - |   |
| Note      receivable                                                            |   |              | 29     |   |   |   | 80 |   |
| Inventories                                                                     |   |              | (5,434 | ) |   |   | 65 |   |
| Prepaid      expenses and other assets                                          |   |              | 192    |   |   |   | (299 | ) |
| Accounts      payable                                                           |   |              | (5     | ) |   |   | (282 | ) |
| Accrued      liabilities                                                        |   |              | (137   | ) |   |   | 1,173 |   |
| Income      taxes                                                               |   |              | (346   | ) |   |   | (490 | ) |
| Deferred      product revenue                                                   |   |              | 334    |   |   |   | 108 |   |
| Net      change in other assets/liabilities                                     |   |              | (14    | ) |   |   | - |   |
| Net      cash (used in) provided by operating activities                        |   |              | (2,242 | ) |   |   | 1,522 |   |
|                                                                            |   |              |   |   |   |   |   |   |
| Cash      flows from investing activities:                                      |   |              |   |   |   |   |   |   |
| Purchase      of property and equipment                                         |   |              | (635   | ) |   |   | (423 | ) |
| Purchase      of marketable securities                                          |   |              | -      |   |   |   | (6,874 | ) |
| Sale      of marketable securities                                              |   |              | 8,626  |   |   |   | 7,069 |   |
| Net      cash provided by (used in) continuing investing activities             |   |              | 7,991  |   |   |   | (228 | ) |
| Net      cash provided by discontinued investing activities                     |   |              | -      |   |   |   | 16 |   |
| Net      cash provided by (used in) investing activities                        |   |              | 7,991  |   |   |   | (212 | ) |
|                                                                            |   |              |   |   |   |   |   |   |
| Cash      flows from financing activities:                                      |   |              |   |   |   |   |   |   |
| Proceeds      from common stock                                                 |   |              | 17     |   |   |   | 519 |   |
| Common      stock purchased and retired                                         |   |              | (6,768 | ) |   |   | (1,664 | ) |
| Tax      benefit attributable to exercise of stock options                      |   |              | (2     | ) |   |   | 67 |   |
| Net      cash (used in) financing activities                                    |   |              | (6,753 | ) |   |   | (1,078 | ) |
|                                                                            |   |              |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                  |   |              | (1,004 | ) |   |   | 232 |   |
| Cash      and cash equivalents at the beginning of the period                   |   |              | 3,327  |   |   |   | 2,782 |   |
| Cash      and cash equivalents at the end of the period                         |   | $                 | 2,323  |   |   | $ | 3,014 |   |
|                                                                            |   |              |   |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements |   |

----

|                                                                            |   | Six Months Ended  |   |
|---------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                            |   | December      31, |   |   | December      31, |   |
|                                                                            |   | 2008              |   |   | 2007 |   |
| Supplemental      disclosure of cash flow information:                          |   |              |   |   |   |   |
| Cash      paid for income taxes                                                 |   | $                 | 914    |   |   | $ | 1,056 |   |
| Cash      paid for interest                                                     |   | $                 | -      |   |   | $ | 2 |   |
|                                                                            |   |              |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing activities:                  |   |              |   |   |   |
| Exchanged      accounts receivable from a vendor with                           |   |              |   |   |   |   |   |   |
|   acccounts      payable to the same vendor                           |   | $                 | 446    |   |   | $ | 168 |   |
| Adoption      of FIN48                                                          |   | $                 | -      |   |   | $ | 295 |   |
| Unrealized      gain on available-for-sale investments, net of tax of $434      |   | $                 | 730    |   |   | $ | - |   |
|                                                                            |   |              |   |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements |   |

----

|                     |   | December 31, |   |   | June 30, |   |
|--------------------------|--------|--------------|--------|--------|----------|--------|
|                     |   | 2008         |   |   | 2008     |   |
|                     |   |         |   |   |     |   |
| Raw      materials       |   | $            | 1,049  |   |     | $      | 724 |   |
| Finished      goods      |   |         | 10,132 |   |     |   | 5,356 |   |
| Consigned      inventory |   |         | 1,678  |   |     |   | 1,719 |   |
| Total      inventory     |   | $            | 12,859 |   |     | $      | 7,799 |   |

|                                |   | Three      Months Ended |   |   | Six      Months Ended |   |
|-------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                |   | December      31,       |   |   | December      31,     |   |
|                                |   | 2008                    |   |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
| Cost      of goods sold             |   | $                       | 17     |   |                  | $      | 23 |   |   | $ | 41 |   |   | $ | 40 |   |
| Sales      & marketing          |   |                    | 18     |   |                  |   | 26 |   |   |   | 32 |   |   |   | 48 |   |
| Research      & development     |   |                    | 7      |   |                  |   | 35 |   |   |   | 15 |   |   |   | 67 |   |
| General      &administrative    |   |                    | 121    |   |                  |   | 117 |   |   |   | 237 |   |   |   | 217 |   |
| Total      stock-based compensation |   | $                       | 163    |   |                  | $      | 201 |   |   | $ | 325 |   |   | $ | 372 |   |

----

|                                                                 |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                                 |   | December 31,       |   |   | December 30,     |   |   | December 31, |   |   | December 30, |   |
|                                                                 |   | 2008               |   |   | 2007             |   |   | 2008 |   |   | 2007 |   |
|                                                                 |   |               |   |   |             |   |   |   |   |   |   |   |
| Gain      on disposal of discontinued operations:                    |   |               |   |   |             |   |   |   |   |   |   |   |
| OM      Video                                                        |   | $                  | -      |   |             | $      | 1 |   |   | $ | - |   |   | $ | 25 |   |
| Total      gain on disposal of discontinued operations               |   |               | -      |   |             |   | 1 |   |   |   | - |   |   |   | 25 |   |
|                                                                 |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax (provision) benefit:                                 |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| OM      Video                                                        |   | $                  | -      |   |             | $      | - |   |   | $ | - |   |   | $ | (9 | ) |
| Total      income tax (provision) benefit                            |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | (9 | ) |
|                                                                 |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total      income from discontinued operations, net of income taxes: |   |               |   |   |             |   |   |   |   |
| OM      Video                                                        |   | $                  | -      |   |             | $      | 1 |   |   | $ | - |   |   | $ | 16 |   |
| Total      income from discontinued operations,                      |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| net      of income taxes                                             |   | $                  | -      |   |             | $      | 1 |   |   | $ | - |   |   | $ | 16 |   |

----

|                                                |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                |   | December 31,       |   |   | December 31,     |   |
|                                                |   | 2008               |   |   | 2007             |   |   | 2008 |   |   | 2007 |   |
| Balance,      beginning of period                   |   | $                  | (895   | )      |             | $      | - |   |   | $ | (694 | ) |   | $ | - |   |
| Unrealized      holding gains, in equity securities |   |               | 1,485  |   |             |   | - |   |   |   | 1,164 |   |   |   | - |   |
| Income      tax                                     |   |               | (554   | )      |             |   | - |   |   |   | (434 | ) |   |   | - |   |
| Balance,      end of period                         |   | $                  | 36     |   |             | $      | - |   |   | $ | 36 |   |   | $ | - |   |

----

|                                                  |   | Three Months EndedDecember 31, |   |   | Six Months EndedDecember 31 |   |
|-------------------------------------------------------|--------|-------------------------------------|--------|--------|----------------------------------|--------|
|                                                  |   | 2008                                |   |   | 2007                             |   |   | 2008 |   |   | 2007 |   |
| Net      income                                       |   | $                                   | 604    |   |                             | $      | 1,782 |   |   | $ | 1,738 |   |   | $ | 858 |   |
|                                                  |   |                                |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income:                      |   |                                |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      gain on available-for-sale investment |   |                                | 1,485  |   |                             |   | - |   |   |   | 1,164 |   |   |   | - |   |
| Income      tax                                       |   |                                | (554   | )      |                             |   | - |   |   |   | (434 | ) |   |   | - |   |
| Comprehensive      Income                             |   | $                                   | 1,535  |   |                             | $      | 1,782 |   |   | $ | 2,468 |   |   | $ | 858 |   |

----

|                                          |   | Total      Fair Value at December 31, 2008 |   |   | Quoted      Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant      other observable inputs (Level      2) |   |   | Significant      unobservable      inputs (Level 3) |   |   | Total  |   |
|-----------------------------------------------|--------|--------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|--------|--------|
|                                          |   |                                       |   |   |                                                                |   |   |                                                    |   |   |                                                     |   |   |   |   |
| Short-term      available-for-sale securities |   | $                                          | 9,628  |   |                                                                | $      | 9,628  |                                                    |   | $      | -                                                        |   |   | $      | -      |   |   | $ | 9,628 |   |
| Long-term      available-for-sale securities  |   |                                       |   | -      |                                                                |   |   | -                                                       |   |   |                                                     | -      |   |   |   | - |   |
| Total                                         |   |                                       |   |   |                                                                | $      | 9,628  |                                                    |   | $      | -                                                        |   |   | $      | -      |   |   | $ | 9,628 |   |

----

----

|                    |   | Deferred Revenue |   |   | Deferred Cost of Goods Sold |   |   | Deferred Gross Profit |   |
|-------------------------|--------|------------------|--------|--------|-----------------------------|--------|--------|-----------------------|--------|
|                    |   |             |   |   |                        |   |   |                  |   |
| December      31, 2008  |   | $                | 4,881  |   |                        | $      | 1,678  |                  |   | $ | 3,203 |   |
| September      30, 2008 |   |             | 4,432  |   |                        |   | 1,926  |                  |   |   | 2,506 |   |
| June      30, 2008      |   |             | 4,547  |   |                        |   | 1,719  |                  |   |   | 2,828 |   |
| March      31, 2008     |   |             | 4,206  |   |                        |   | 1,757  |                  |   |   | 2,449 |   |
| December      31, 2007  |   |             | 4,980  |   |                        |   | 1,859  |                  |   |   | 3,121 |   |

----

----

|                                  |   | Three Months Ended  |   |   | Six Months Ended    |   |
|---------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                  |   | December 31,        |   |   | December 31,        |   |
|                                  |   | (in      thousands) |   |   | (in      thousands) |   |
|                                  |   | 2008                |   |   | 2007                |   |   | 2008 |   |   | 2007 |   |
|                                  |   |                |   |   | %      of Revenue   |   |   |   |   |   | %      of Revenue |   |   |   |   |   | %      of Revenue |   |   |   |   |   | %      of Revenue |   |
| Revenue:                              |   | $                   | 9,970  |   |                |   | 100% |   |   | $ | 10,787 |   |   |   | 100% |   |   | $ | 20,229 |   |   |   | 100% |   |   | $ | 20,229 |   |   |   | 100% |   |
|                                  |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of goods sold:              |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      cost of goods sold         |   |                | 4,168  |   |                |   | 42% |   |   |   | 4,414 |   |   |   | 41% |   |   |   | 7,794 |   |   |   | 39% |   |   |   | 8,714 |   |   |   | 43% |   |
| Gross      profit                     |   |                | 5,802  |   |                |   | 58% |   |   |   | 6,373 |   |   |   | 59% |   |   |   | 12,435 |   |   |   | 61% |   |   |   | 11,515 |   |   |   | 57% |   |
|                                  |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:              |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      & marketing            |   |                | 1,934  |   |                |   | 19% |   |   |   | 1,578 |   |   |   | 15% |   |   |   | 3,911 |   |   |   | 19% |   |   |   | 3,180 |   |   |   | 16% |   |
| Research      and product development |   |                | 1,844  |   |                |   | 18% |   |   |   | 1,678 |   |   |   | 16% |   |   |   | 3,620 |   |   |   | 18% |   |   |   | 3,433 |   |   |   | 17% |   |
| General      and administrative       |   |                | 1,257  |   |                |   | 13% |   |   |   | 1,198 |   |   |   | 11% |   |   |   | 2,329 |   |   |   | 12% |   |   |   | 4,093 |   |   |   | 20% |   |
| Total      operating expenses         |   | $                   | 5,035  |   |                |   | 51% |   |   | $ | 4,454 |   |   |   | 41% |   |   | $ | 9,860 |   |   |   | 49% |   |   | $ | 10,706 |   |   |   | 53% |   |

----

----

----

----

----

----

----

|                                    | VOTES     |
|-----------------------------------------|-----------|
|                                    | FOR       | WITHHELD |
| Brad      R. Baldwin                    | 7,073,530 | 555,480 |
| Zeynep      “Zee” Hakimoglu | 7,165,760 | 463,250 |
| Larry      R. Hendricks                 | 7,087,667 | 541,343 |
| Scott      M. Huntsman                  | 7,186,130 | 442,880 |

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

----

| ClearOne      Communications, Inc., a Utah corporation |
|--------------------------------------------------------|
|                                                   |   |   |
|                                                   |   |   |
|                                                   |   |   |
| February      13, 2009                                 | By: | /s/ Zeynep Hakimoglu |
|                                                   |   | Zeynep      Hakimoglu |
|                                                   |   | President      and Chief Executive Officer |
|                                                   |   | (Principal      Executive Officer) |
|                                                   |   |   |
|                                                   |   |   |
|                                                   |   |   |
| February      13, 2009                                 | By: | /s/ Greg A. LeClaire |
|                                                   |   | Greg      A. LeClaire |
|                                                   |   | Chief      Financial Officer |
|                                                   |   | (Principal      Financial and Accounting Officer) |