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| Utah                                                           |   | 87-0398877                              |
|----------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. employer identification number) |

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

| Larger Accelerated Filer [ ]                                                       | Accelerated Filer  [ ]          |
|------------------------------------------------------------------------------------|-------------------------------------------|
| Non-Accelerated Filer  [ ] (Do not check if a smaller reporting company) | Smaller Reporting Company   [x] |

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CLEARONE COMMUNICATIONS, INC.

| Item Number |                                                                                              | Page No. |
|-------------|---------------------------------------------------------------------------------------------------|----------|
| PART I      | FINANCIAL INFORMATION                                                                             |     |
| Item 1      | Condensed Consolidated Financial Statements:                                                      |     |
|        | Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009                             | 1        |
|        | Consolidated Statements of Operations for the three and six months ended June 30, 2010 and 2009   | 2        |
|        | Consolidated Statements of Cash Flows for six months ended June 30, 2010 and 2009                 | 3        |
|        |  Notes to Condensed Consolidated Financial Statements                                        | 4        |
| Item 2      |  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 8        |
| Item 3      |  Quantitative and Qualitative Disclosures About Market Risk                                  | 15       |
| Item 4T     |  Controls and Procedures                                                                     | 15       |
| PART II     | OTHER INFORMATION                                                                                 |     |
| Item 1      | Legal Proceedings                                                                                 | 16       |
| Item 1A     | Risk Factors                                                                                      | 16       |
| Item 2      | Unregistered Sales of Equity Securities and Use of Proceeds                                       | 16       |
| Item 3      | Defaults Upon Senior Securities                                                                   | 16       |
| Item 4      | Removed and Reserved                                                                              | 16       |
| Item 5      | Other Information                                                                                 | 16       |
| Item 6      | Exhibits                                                                                          | 16       |
| Signatures  |                                                                                              | 17       |

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Table of Contents

CLEARONE COMMUNICATIONS

|                                                                                                                                         |   | Unaudited          |   |   | Audited                |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|
|                                                                                                                                         |   | As ofJune 30, 2010 |   |   | As ofDecember 31, 2009 |   |
| ASSETS                                                                                                                                       |   |               |   |   |                   |   |
| Current assets:                                                                                                                              |   |               |   |   |                   |   |
| Cash and cash equivalents                                                                                                                    |   | $                  | 10,906 |   |                   | $      | 9,494 |   |
| Receivables, net of allowance for doubtful accounts of $191 and $103, respectively                                                           |   |               | 8,429  |   |                   |   | 6,571 |   |
| Inventories, net                                                                                                                             |   |               | 6,176  |   |                   |   | 6,236 |   |
| Deferred income taxes                                                                                                                        |   |               | 3,351  |   |                   |   | 3,128 |   |
| Prepaid expenses and other assets                                                                                                            |   |               | 556    |   |                   |   | 1,609 |   |
| Total current assets                                                                                                                         |   |               | 29,418 |   |                   |   | 27,038 |   |
|                                                                                                                                         |   |               |   |   |                   |   |   |   |
| Long-term inventory                                                                                                                          |   |               | 4,178  |   |                   |   | 6,412 |   |
| Property and equipment, net                                                                                                                  |   |               | 3,195  |   |                   |   | 3,246 |   |
| Intangibles                                                                                                                                  |   |               | 2,920  |   |                   |   | 3,095 |   |
| Goodwill                                                                                                                                     |   |               | 726    |   |                   |   | 726 |   |
| Deferred income taxes                                                                                                                        |   |               | 852    |   |                   |   | 1,037 |   |
| Other assets                                                                                                                                 |   |               | 21     |   |                   |   | 21 |   |
| Total assets                                                                                                                                 |   | $                  | 41,310 |   |                   | $      | 41,575 |   |
|                                                                                                                                         |   |               |   |   |                   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                         |   |               |   |   |                   |   |   |   |
| Current liabilities:                                                                                                                         |   |               |   |   |                   |   |   |   |
| Accounts payable                                                                                                                             |   |               | 2,592  |   |                   |   | 2,304 |   |
| Accrued liabilities                                                                                                                          |   |               | 2,066  |   |                   |   | 1,768 |   |
| Current maturities of long-term debt                                                                                                         |   |               | -      |   |                   |   | 2,000 |   |
| Deferred product revenue                                                                                                                     |   |               | 5,033  |   |                   |   | 4,707 |   |
| Total current liabilities                                                                                                                    |   |               | 9,691  |   |                   |   | 10,779 |   |
|                                                                                                                                         |   |               |   |   |                   |   |   |   |
| Deferred rent                                                                                                                                |   |               | 603    |   |                   |   | 466 |   |
| Other long-term liabilities                                                                                                                  |   |               | 1,188  |   |                   |   | 1,232 |   |
| Total liabilities                                                                                                                            |   |               | 11,482 |   |                   |   | 12,477 |   |
|                                                                                                                                         |   |               |   |   |                   |   |   |   |
| Shareholders' equity:                                                                                                                        |   |               |   |   |                   |   |   |   |
| Common stock, par value $0.001, 50,000,000 shares authorized, 8,929,314  and 8,929,134 shares issued and outstanding, respectively |   |               | 9      |   |                   |   | 9 |   |
| Additional paid-in capital                                                                                                                   |   |               | 38,970 |   |                   |   | 38,810 |   |
| Accumulated deficit                                                                                                                          |   |               | (9,151 | )      |                   |   | (9,721 | ) |
| Total shareholders' equity                                                                                                                   |   |               | 29,828 |   |                   |   | 29,098 |   |
| Total liabilities and shareholders' equity                                                                                                   |   | $                  | 41,310 |   |                   | $      | 41,575 |   |

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Table of Contents

CONDENSED 

|                                        |   | Three months ended |      |   | Six months ended |   |
|---------------------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                                        |   | June 30, 2010      |      |   | June 30, 2009    |   |   | June 30, 2010 |   |   | June 30, 2009 |   |
| Revenue                                     |   | $                  | 9,937     |   |             | $      | 7,060 |   |   | $ | 18,293 |   |   | $ | 14,662 |   |
| Cost of goods sold                          |   |               | 4,276     |   |             |   | 3,886 |   |   |   | 7,437 |   |   |   | 7,435 |   |
| Gross profit                                |   |               | 5,661     |   |             |   | 3,174 |   |   |   | 10,856 |   |   |   | 7,227 |   |
|                                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                         |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Sales and marketing                         |   |               | 2,183     |   |             |   | 1,929 |   |   |   | 4,085 |   |   |   | 3,619 |   |
| Research and product development            |   |               | 1,744     |   |             |   | 2,111 |   |   |   | 3,648 |   |   |   | 3,921 |   |
| General and administrative                  |   |               | 1,214     |   |             |   | 1,180 |   |   |   | 2,146 |   |   |   | 1,303 |   |
| Insurance settlement                        |   |               | -         |   |             |   | (1,100 | ) |   |   | - |   |   |   | (1,100 | ) |
| Total operating expenses                    |   |               | 5,141     |   |             |   | 4,120 |   |   |   | 9,879 |   |   |   | 7,743 |   |
|                                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                     |   |               | 520       |   |             |   | (946 | ) |   |   | 977 |   |   |   | (516 | ) |
|                                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense), net                 |   |               | -         |   |             |   | 225 |   |   |   | (132 | ) |   |   | 285 |   |
|                                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes           |   |               | 520       |   |             |   | (721 | ) |   |   | 845 |   |   |   | (231 | ) |
| (Provision for) benefit from income taxes   |   |               | (167      | )      |             |   | 319 |   |   |   | (275 | ) |   |   | 189 |   |
| Net income (loss)                           |   | $                  | 353       |   |             | $      | (402 | ) |   | $ | 570 |   |   | $ | (42 | ) |
|                                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per common share      |   | $                  | 0.04      |   |             | $      | (0.05 | ) |   | $ | 0.06 |   |   | $ | - |   |
| Diluted earnings (loss) per common share    |   | $                  | 0.04      |   |             | $      | (0.04 | ) |   | $ | 0.06 |   |   | $ | - |   |
|                                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average shares outstanding   |   |               | 8,929,281 |   |             |   | 8,928,546 |   |   |   | 8,929,277 |   |   |   | 8,921,313 |   |
| Diluted weighted average shares outstanding |   |               | 9,045,866 |   |             |   | 9,047,260 |   |   |   | 9,045,718 |   |   |   | 9,039,863 |   |

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Table of Contents

CONDENSED CONSOLIDATED 

|                                                                           |   | Six months ended |   |
|--------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                           |   | June 30, 2010    |   |   | June 30, 2009 |   |
| Cash flows from operating activities:                                          |   |             |   |   |   |   |
| Net income (loss)                                                              |   | $                | 570    |   |   | $ | (42 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operations: |   |             |   |   |   |   |   |   |
| Depreciation and amortization expense                                          |   |             | 585    |   |   |   | 363 |   |
| Stock-based compensation                                                       |   |             | 160    |   |   |   | 309 |   |
| Write-off of inventory                                                         |   |             | 145    |   |   |   | 1,924 |   |
| Loss on disposal of assets and fixed asset write-offs                          |   |             | 111    |   |   |   | 5 |   |
| Provision for doubtful accounts                                                |   |             | 88     |   |   |   | 38 |   |
| Changes in operating assets and liabilities:                                   |   |             |   |   |   |   |   |   |
| Receivables                                                                    |   |             | (1,946 | ) |   |   | 1,966 |   |
| Deferred income taxes                                                          |   |             | (37    | ) |   |   | 76 |   |
| Note receivable                                                                |   |             | -      |   |   |   | (29 | ) |
| Inventories                                                                    |   |             | 2,148  |   |   |   | (4,457 | ) |
| Prepaid expenses and other assets                                              |   |             | 410    |   |   |   | (784 | ) |
| Accounts payable                                                               |   |             | 582    |   |   |   | 2,407 |   |
| Accrued liabilities                                                            |   |             | 506    |   |   |   | (1,155 | ) |
| Deferred product revenue                                                       |   |             | 326    |   |   |   | (611 | ) |
| Other assets/liabilities, net                                                  |   |             | (44    | ) |   |   | 310 |   |
| Net cash provided by operating activities                                      |   |             | 3,604  |   |   |   | 320 |   |
|                                                                           |   |             |   |   |   |   |   |   |
| Cash flows from investing activities:                                          |   |             |   |   |   |   |   |   |
| Escrow proceeds received pursuant to NetStreams acquisition                    |   |             | 350    |   |   |   | - |   |
| Purchase of property and equipment                                             |   |             | (542   | ) |   |   | (439 | ) |
| Purchase of marketable securities                                              |   |             | -      |   |   |   | (1,253 | ) |
| Sale of marketable securities                                                  |   |             | -      |   |   |   | 8,730 |   |
| Net cash (used in) provided by investing activities                            |   |             | (192   | ) |   |   | 7,038 |   |
|                                                                           |   |             |   |   |   |   |   |   |
| Cash flows from financing activities:                                          |   |             |   |   |   |   |   |   |
| Proceeds from the issuance of common stock - options                           |   |             | -      |   |   |   | 118 |   |
| Principal payments on long-term debt                                           |   |             | (2,000 | ) |   |   | - |   |
| Tax benefit from stock options                                                 |   |             | -      |   |   |   | 2 |   |
| Net cash (used in) provided by financing activities                            |   |             | (2,000 | ) |   |   | 120 |   |
|                                                                           |   |             |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                      |   |             | 1,412  |   |   |   | 7,478 |   |
| Cash and cash equivalents at the beginning of the period                       |   |             | 9,494  |   |   |   | 2,323 |   |
| Cash and cash equivalents at the end of the period                             |   | $                | 10,906 |   |   | $ | 9,801 |   |
|                                                                           |   |             |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                              |   |             |   |   |   |   |   |   |
| Cash paid for interest                                                         |   | $                | 61     |   |   | $ | - |   |
| Cash paid for income taxes                                                     |   |             | 3      |   |   |   | 723 |   |
|                                                                           |   |             |   |   |   |   |   |   |
| Supplemental disclosure of non-cash activities:                                |   |             |   |   |   |   |   |   |
| Exchanged deposits from a vendor with accounts payable to the same vendor      |   | $                | 293    |   |   | $ | 598 |   |
| Unrealized loss on marketable securities, net of tax of $0 and $19             |   |             | -      |   |   |   | (30 | ) |
| Current liabilities reclassed to deferred rent                                 |   |             | 176    |   |   |   | - |   |

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Table of Contents

NOTES TO 

| Decrease in receivables                         |   | $      | 91  |   |
|-------------------------------------------------|--------|--------|-----|--------|
| Decrease in deferred income taxes - current     |   |   | 1   |   |
| Increase in deferred income taxes - non current |   |   | (35 | )      |
| Increase in goodwill                            |   | $      | 57  |   |

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Table of Contents

|                                |   | Estimateduseful lives (Years) |   |   | Amount |   |   | AccumulatedAmortization |   |   | Net    |   |
|-------------------------------------|--------|-------------------------------|--------|--------|--------|--------|--------|-------------------------|--------|--------|--------|--------|
| Tradename                           |   |                          | 7      |   |   | $      | 435    |                    |   | $      | 41     |   |   | $ | 394 |   |
| Patents and technological know-how  |   |                          | 10     |   |   |   | 2,070  |                    |   |   | 138    |   |   |   | 1,932 |   |
| Proprietary software                |   |                          | 3      |   |   |   | 215    |                    |   |   | 48     |   |   |   | 167 |   |
| Other                               |   |                          | 5      |   |   |   | 49     |                    |   |   | 22     |   |   |   | 27 |   |
|                                |   |                          |   |   |   |   | 2,769  |                    |   |   | 249    |   |   |   | 2,520 |   |
| In-process research and development |   | Indefinite                    |   |   |   | 400    |   |                    |   | -      |   |   |   | 400 |   |
| Total                               |   |                          |   |   |   | $      | 3,169  |                    |   | $      | 249    |   |   | $ | 2,920 |   |

|                                          |   | Three months ended |   |   | Six months ended |   |
|-----------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                          |   | June 30, 2010      |   |   | June 30, 2009    |   |   | June 30, 2010 |   |   | June 30, 2009 |   |
| Amortization of intangibles with finite lives |   | $                  | 88     |   |             | $      | 2 |   |   | $ | 175 |   |   | $ | 5 |   |

|           |   | As ofJune 30, 2010 |   |   | As ofDecember 31, 2009 |   |
|----------------|--------|--------------------|--------|--------|------------------------|--------|
| Current:       |   |               |   |   |                   |   |
| Raw materials  |   | $                  | 265    |   |                   | $      | 453 |   |
| Finished goods |   |               | 5,911  |   |                   |   | 5,783 |   |
|           |   | $                  | 6,176  |   |                   | $      | 6,236 |   |
|           |   |               |   |   |                   |   |   |   |
| Long-term:     |   |               |   |   |                   |   |   |   |
| Raw materials  |   | $                  | 705    |   |                   | $      | 1,056 |   |
| Finished goods |   |               | 3,473  |   |                   |   | 5,356 |   |
|           |   | $                  | 4,178  |   |                   | $      | 6,412 |   |

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Table of Contents

|                                                                          |   | Three months ended |   |   | Six months ended |   |
|-------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                                          |   | June 30, 2010      |   |   | June 30, 2009    |   |   | June 30, 2010 |   |   | June 30, 2009 |   |
| Losses incurred on valuation of inventory and write-off of obsolete inventory |   | $                  | 60     |   |             | $      | 1,234 |   |   | $ | 145 |   |   | $ | 1,919 |   |

|                       |   | Three months ended |   |   | Six months ended |   |
|----------------------------|--------|--------------------|--------|--------|------------------|--------|
|                       |   | June 30, 2010      |   |   | June 30, 2009    |   |   | June 30, 2010 |   |   | June 30, 2009 |   |
| Cost of goods sold         |   | $                  | -      |   |             | $      | - |   |   | $ | - |   |   | $ | - |   |
| Sales and marketing        |   |               | 13     |   |             |   | 21 |   |   |   | 24 |   |   |   | 46 |   |
| Research and development   |   |               | 7      |   |             |   | 6 |   |   |   | 14 |   |   |   | 13 |   |
| General and administrative |   |               | 65     |   |             |   | 122 |   |   |   | 122 |   |   |   | 250 |   |
|                       |   | $                  | 85     |   |             | $      | 149 |   |   | $ | 160 |   |   | $ | 309 |   |

|                                                                     |   | Three months ended |   |   | Six months ended |   |
|--------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                                     |   | June 30, 2010      |   |   | June 30, 2009    |   |   | June 30, 2010 |   |   | June 30, 2009 |   |
| Balance at the beginning of the period                                   |   | $                  | 29,390 |   |             | $      | 28,727 |   |   | $ | 29,098 |   |   | $ | 28,131 |   |
| Net income during the period                                             |   |               | 353    |   |             |   | (402 | ) |   |   | 570 |   |   |   | (42 | ) |
| Stock based compensation                                                 |   |               | 85     |   |             |   | 149 |   |   |   | 160 |   |   |   | 309 |   |
| Exercise of stock options                                                |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | 118 |   |
| Unrealized gain (loss) on marketable securities net of tax, $(6) and $19 |   |               | -      |   |             |   | 12 |   |   |   | - |   |   |   | (30 | ) |
| Balance at end of the period                                             |   | $                  | 29,828 |   |             | $      | 28,486 |   |   | $ | 29,828 |   |   | $ | 28,486 |   |

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Table of Contents

|                                              |   | Three months ended |   |   | Six months ended |   |
|---------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                              |   | June 30, 2010      |   |   | June 30, 2009    |   |   | June 30, 2010 |   |   | June 30, 2009 |   |
| Interest income                                   |   | $                  | 19     |   |             | $      | 227 |   |   | $ | 27 |   |   | $ | 267 |   |
| Interest expense                                  |   |               | -      |   |             |   | - |   |   |   | (51 | ) |   |   | - |   |
| Gain (loss) on disposal of property and equipment |   |               | -      |   |             |   | - |   |   |   | (111 | ) |   |   | - |   |
| Other                                             |   |               | (19    | )      |             |   | (2 | ) |   |   | 3 |   |   |   | 18 |   |
|                                              |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   | $                  | -      |   |             | $      | 225 |   |   | $ | (132 | ) |   | $ | 285 |   |

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Table of Contents

MANAGE

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Table of Contents

| ·   | Focus on Unified Communications (UC) by forging strategic product and channel relationships with major UC systems providers. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Extend our reach into the enterprise by offering enterprise-wide HD audio, video and data distribution solutions. |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | Develop and deepen direct relationships with key partner resellers. |
|--------------------|---------------------------------------------------------------------|

| ·   | Following the successful operational integration of NetStreams into ClearOne, accelerate development of next generation products by tightly integrating ClearOne and NetStreams technologies. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Target bigger vertical markets including digital signage and audio distribution. |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Leverage NetStreams’ broad-ranging intellectual property by engaging in a variety of partnership activities ranging from licensing to developing a StreamNet eco-system to expand the application of StreamNet technology. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                      |   | Three months ended June 30, |   |   | Six months ended June 30, |   |
|-------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                                      |   | 2010                        |   |   | % ofRevenue               |   |   | 2009 |   |   | % ofRevenue |   |   | Change |   |   | 2010 |   |   | % ofRevenue |   |   | 2009 |   |   | % ofRevenue |   |   | Change |   |
|                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                   |   | $                           | 9,937  |   |                      |   | 100.0 | % |   | $ | 7,060 |   |   |   | 100.0 | % |   |   | 40.8 | % |   | $ | 18,293 |   |   |   | 100.0 | % |   | $ | 14,662 |   |   |   | 100.0 | % |   |   | 24.8 | % |
| Cost of goods sold                        |   |                        | 4,276  |   |                      |   | 43.0 | % |   |   | 3,886 |   |   |   | 55.0 | % |   |   | 10.0 | % |   |   | 7,437 |   |   |   | 40.7 | % |   |   | 7,435 |   |   |   | 50.7 | % |   |   | 0.0 | % |
| Gross profit                              |   |                        | 5,661  |   |                      |   | 57.0 | % |   |   | 3,174 |   |   |   | 45.0 | % |   |   | 78.4 | % |   |   | 10,856 |   |   |   | 59.3 | % |   |   | 7,227 |   |   |   | 49.3 | % |   |   | 50.2 | % |
| Sales and marketing                       |   |                        | 2,183  |   |                      |   | 22.0 | % |   |   | 1,929 |   |   |   | 27.3 | % |   |   | 13.2 | % |   |   | 4,085 |   |   |   | 22.3 | % |   |   | 3,619 |   |   |   | 24.7 | % |   |   | 12.9 | % |
| Research and product development          |   |                        | 1,744  |   |                      |   | 17.6 | % |   |   | 2,111 |   |   |   | 29.9 | % |   |   | -17.4 | % |   |   | 3,648 |   |   |   | 19.9 | % |   |   | 3,921 |   |   |   | 26.7 | % |   |   | -7.0 | % |
| General and administrative                |   |                        | 1,214  |   |                      |   | 12.2 | % |   |   | 1,180 |   |   |   | 16.7 | % |   |   | 2.9 | % |   |   | 2,146 |   |   |   | 11.7 | % |   |   | 1,303 |   |   |   | 8.9 | % |   |   | 64.7 | % |
| Insurance Settlement                      |   |                        | -      |   |                      |   | 0.0 | % |   |   | (1,100 | ) |   |   | -15.6 | % |   |   | * |   |   |   | - |   |   |   | 0.0 | % |   |   | (1,100 | ) |   |   | -7.5 | % |   |   | * |   |
| Operating income                          |   |                        | 520    |   |                      |   | 5.2 | % |   |   | (946 | ) |   |   | -13.4 | % |   |   | * |   |   |   | 977 |   |   |   | 5.3 | % |   |   | (516 | ) |   |   | -3.5 | % |   |   | * |   |
| Other (expense) income, net               |   |                        | -      |   |                      |   | 0.0 | % |   |   | 225 |   |   |   | 3.2 | % |   |   | * |   |   |   | (132 | ) |   |   | -0.7 | % |   |   | 285 |   |   |   | 1.9 | % |   |   | * |   |
| Income before income taxes                |   |                        | 520    |   |                      |   | 5.2 | % |   |   | (721 | ) |   |   | -10.2 | % |   |   | * |   |   |   | 845 |   |   |   | 4.6 | % |   |   | (231 | ) |   |   | -1.6 | % |   |   | * |   |
| (Provision for) benefit from income taxes |   |                        | (167   | )      |                      |   | -1.7 | % |   |   | 319 |   |   |   | 4.5 | % |   |   | * |   |   |   | (275 | ) |   |   | -1.5 | % |   |   | 189 |   |   |   | 1.3 | % |   |   | * |   |
| Net income                                |   | $                           | 353    |   |                      |   | 3.6 | % |   | $ | (402 | ) |   |   | -5.7 | % |   |   | * |   |   | $ | 570 |   |   |   | 3.1 | % |   | $ | (42 | ) |   |   | -0.3 | % |   |   | * |   |
|                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| * Not meaningful                          |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                        |   | As ofJune 30, 2010 |   |   | As ofDecember 31, 2009 |   |
|-----------------------------|--------|--------------------|--------|--------|------------------------|--------|
| Deferred revenue            |   | $                  | 5,033  |   |                   | $      | 4,707 |   |
| Deferred cost of goods sold |   |               | 2,035  |   |                   |   | 1,846 |   |
| Deferred gross profit       |   | $                  | 2,998  |   |                   | $      | 2,861 |   |

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Item 3.   QUANTITATIVE 

Item 4T.   CONTROLS 

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PART

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

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SIGN

| ClearOne Communications, Inc., a Utah corporation |
|---------------------------------------------------|
|                                              |   |   |
|                                              |   |   |
|                                              |   |   |
| August 12, 2010                                   | By: | /s/ Zeynep Hakimoglu |
|                                              |   | Zeynep Hakimoglu |
|                                              |   | Chief Executive Officer |
|                                              |   | (Principal Executive Officer) |
|                                              |   |   |
|                                              |   |   |
|                                              |   |   |
| August 12, 2010                                   | By: | /s/ Narsi Narayanan |
|                                              |   | Narsi Narayanan |
|                                              |   | Vice President of Finance |
|                                              |   | (Principal Financial and Accounting Officer) |

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