840715--9/17/2007--CLEARONE_COMMUNICATIONS_INC

related topics
{customer, product, revenue}
{property, intellectual, protect}
{cost, regulation, environmental}
{operation, international, foreign}
{personnel, key, retain}
{control, financial, internal}
{stock, price, operating}
{competitive, industry, competition}
{regulation, government, change}
{system, service, information}
Risks Relating to Our Business We face intense competition in all markets for our products and services; our operating results will be adversely affected if we cannot compete effectively against other companies. Difficulties in estimating customer demand in our products segment could harm our profit margins. Our sales depend to a certain extent on government funding and regulation. Environmental laws and regulations subject us to a number of risks and could result in significant costs and impact on revenue Product development delays or defects could harm our competitive position and reduce our revenues. Our profitability may be adversely affected by our continuing dependence on our distribution channels. Reporting of channel inventory by certain distributors. We depend on an outsourced manufacturing strategy. Product obsolescence could harm demand for our products and could adversely affect our revenues and our results of operations. If we are unable to protect our intellectual property rights or have insufficient proprietary rights, our business would be materially impaired. International sales account for a significant portion of our net revenue and risks inherent in international sales could harm our business. We may not be able to hire and retain qualified key and highly-skilled technical employees, which could affect our ability to compete effectively and may cause our revenue and profitability to decline. Our reliance on third-party technology or license agreements. We may have difficulty in collecting outstanding receivables. Interruptions to our business could adversely affect our operations. Risks Relating to Our Company Our stock price fluctuates as a result of the conduct of our business and stock market fluctuations. We have previously identified material weaknesses in our internal controls.

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