Emmett Pepe: Thank you, Kyle. With the numbers highlighted in detail in the press release, let me focus my comments on a few areas and provide added color where I can. Revenue during the third quarter of 2023 was $11.6 million, a year-over-year decrease of 3% compared to $11.9 million in the third quarter of 2022 and sequentially lower by 7% when compared to $12.4 million in the second quarter of 2023. The Engineering division continued to perform well for the company with revenues of $8.7 million for the third quarter of 2023. This compared to $9 million in the second quarter of 2023 and compared to $8.1 million in the third quarter of 2022. Orders for engineering performance were $13 million, which demonstrated significant increases from the $4.9 million in Q2 of 2023, which is up from last year’s $7.2 million in Q3 of 2022.
The increases are due to an improved order flow environment for engineering services as well as the timing of when the orders are received. Workforce Solutions division revenue in the quarter was $2.9 million compared to $3.3 million in the second quarter of 2023 and compared to $3.8 million in the third quarter of 2022. Orders were $1.7 million in the third quarter of 2023, which was slightly improved on a sequential basis when compared to $1.3 million in the second quarter of 2023. Looking year-over-year, the division continues to experience some challenges with revenues recorded at $3.8 million in the third quarter of 2022. The decrease in orders in the third quarter stem from early terminations we received from our clients in the magnitude of $1.7 million.
Terminations can occur depending on the scope of service, speed of project completion and other variables. The division is still experiencing some resistance from customers. We were close to monitoring this business, and we are optimistic about the book of business that is available to the marketplace. Gross profit in the third quarter of 2023 was $3.7 million or 32.1% of revenue. This compared to gross profit of $3.2 million or 26% of revenue in the second quarter of 2023 and $3.3 million or 27.4% of revenue in the third quarter of 2022. Gross margin improved over the second quarter of 2023 and third quarter of 2022 due primarily to greater percentage of engineering revenue, increased utilization and margin improvements on our large engineering projects.
Gross profit margin of 32.1% was the highest it’s been since 2016. In the beginning of Q3, we implemented a utilization initiative for the Engineering segment that has reduced unproductive labor costs and improved margins. Operating expenses, excluding depreciation and amortization in the third quarter of 2023 were $4.4 million compared to $3.8 million in the second quarter of 2023 compared to $4.5 million in the third quarter of 2022. The operating expenses in the quarter were affected by a couple of nonrecurring expenses driven primarily by a $750,000 settlement of a lawsuit stemming from a technical dispute in our workforce Solutions division and the repayment of this settlement will be done quarterly during 2024. If these expenses were not incurred, operating expenses would have been around $3.4 million, which is lower than OpEx costs of $3.8 million in Q2 of this year and the $4.4 million in Q3 of a year ago.
We are confident in the expense cutting that was conducted in the past few quarters and that the OpEx per quarter should remain at similar levels in future quarters. The net loss in the third quarter of 2023 was $2 million or a loss of $0.82 per share compared to a loss of $1.5 million in the second quarter of 2023 or $0.62 per share. The net loss in Q3 of 2022 was $9 million or $4.22 loss per basic and diluted share, which included a loss on impairment of $7.5 million. The net loss in the third quarter of 2023 also included a loss on impairment of $900,000 coming from the revaluation of the company’s Workforce Solutions business. Due to the market capitalization of the company and the slowdown in Workforce Solutions divisions, we reformed an impairment analysis on both segments of which resulted in the lowering of the goodwill carrying value of the Workforce Solutions division.
While the Workforce Solutions division has not shown the stability and growth that we would have liked, it is still a critical piece of our business and has promising opportunities moving forward, such as the $15 million project Kyle mentioned expected to ramp up in 2024. Adjusted net income was a positive $175,000 or $0.07 per share in the third quarter of 2023 compared to an adjusted net loss of $1.3 million or $0.53 per share in the second quarter of 2023. And adjusted net loss totaled $1.1 million or $0.49 per diluted share in Q3 of ’22. Adjusted EBITDA totaled positive $659,000 for the third quarter of 2023, an improvement compared to the negative adjusted EBITDA of $361,000 in Q2 of ’23 and the negative adjusted EBITDA of $690,000 in the third quarter from a year ago.
