We’ll not be forecasting that decline for you, but we will report on that as it happens beginning next year. Finally, I’d like to mention another platform design win for our ToughWriter printer. The ToughWriter will be standard equipment on Boeing’s new 777X, a wide-body twin-engine jet line are expected to enter service in 2025. Last month, our Aerospace group exhibited at the Dubai Air Show, where I had the privilege of touring the 777X flight test aircraft and hearing from a number of commercial aircraft airline pilots about the favorable experiences with our printers. And [Ember] the captain captured it best when he referred to our printer as ‘a lifesaver’. We agree. With that, let me turn the call over to David for some further financial comments.
David Smith : Thanks, Greg, and good morning, everybody. I’ll reinforce and add some comments about the third quarter financial performance. As Greg said, total regular for the quarter was $37.5 million, down about 5% year-over-year with the lower revenue in the PI segment, partly offset by growth on the test and measurement side. Hardware revenue of $12.9 million was about 8% higher than last year’s third quarter, and supplies revenue was about 13% to $20 million. While the service and other revenue grew about 4% to $4.7 million. Domestic revenue was $21.8 million for the third quarter, a 55.8% of the total compared to 57% in the year earlier period. International revenue was $16.6 million or 44% of revenue compared to 43% in the third quarter of fiscal 2023.
Gross profit increased 770 basis points to 39.4% in the third quarter, driven by better product mix lower manufacturing expenses and better absorption and reduced period costs. Of the improvement, the directly trackable impacts on the PI segment restructuring benefits were approximately $450,000 in the fourth quarter — third quarter rather, and that impacted both gross margin and operating expense. Operating expense declined about 9% in the third quarter to $10.2 million on a non-GAAP basis. This and the factors Greg outlined for why the operating income increased more than twofold to $3.6 million, while non-GAAP operating margin improved over 710 basis points to 12.3%. On the bottom line, we reported net income of $2.8 million or $0.37 per diluted share for this — just the next quarter versus $289,000 or $0.04 per diluted share in the year earlier period.
But keep in mind that the GAAP net income for the third quarter of fiscal ’23 included transaction costs of $540,000 or $0.07 per diluted share associated with the August 22 acquisition of Astro machine. On a non-GAAP basis, net income for the third quarter of fiscal ’23 was $0.11 per diluted share. Adjusted EBITDA in the third quarter of this year was 5.7% or 15% compared to $2.4 million or 6% of revenue in the same period last year. Excluding transaction costs last year’s adjusted EBITDA for the third quarter was $3.1 million or 8%. Bookings for the third quarter of fiscal ’24 increased 1% to $35.5 million from $35 million in the third quarter last year. Backlog as of October 28, 2023 decreased 20% to $31.2 million from $39.3 million a year ago.
But this decline is largely due to the timing in the T&M segment and is not indicative of what we expect in the fourth quarter this year when we expect the income statement overall to be consistent with the third quarter. As previously discussed, we had identified about 150 printers sold to customers that were affected by the faulty ink. and we’re working with those customers to either repair or replace the effective printers on a gradual basis. We anticipate this will be largely done by the end of this fiscal year at the end of January 2024, with maybe some of it trailing into the first quarter. In Q3, we incurred costs of about $240,000 for that program, which had been reserved for in connection with the restructuring. Inventory reduction was modest.
And while the supply chain challenges are abating. We’re still recovering in the inventory level reduction tests that we have. Inventory was $46.3 million at the end of the quarter, down 9% from the end of fiscal ’23. Term loan debt at the end of the third quarter was $9.5 million compared with $12 million at the end of last fiscal year. the revolving credit is down $1 million to $14.9 million. Our expectation is to generate cash from earnings and working capital reduction in Q4. and to continue the current focus on using available cash to reduce debt. So I’ll turn the call back to Greg for closing comments. Thanks, David.
Greg Woods: Our operational and financial momentum entering the final quarter of fiscal 2024 is strong. The recently completed strategic restructuring has significantly improved the cost structure and margin profile of the business and we expect both segments to perform in line with these results again in the fourth quarter. The restructuring of our PI segment allows us to focus on those products with the strongest volume and margin potential while continuing to drive demand through innovative new solutions, such as the QL-900, the T2 Pro and the T3 Pro, and we’re very excited about the new OEM products in our Astro Machine pipeline. In the Test & Measurement segment, the key demand drivers are commercial air traffic, new aircraft orders and OEM market forecasts, all of which are pointing up and to the right.
