For the third quarter ended September 30th, 2010, I.D. Systems revenues increased sequentially to $6.5 million. We saw renewed growth trend in sales of our core wireless vehicle management system during the quarter, a positive indication that the market for industrial fleet management is rebounding from last year's global economic downturn. We also saw continued solid performance from our Asset Intelligence subsidiary with a steady stream of recurring revenue from service contracts for tracking and managing fleets of cargo containers and trailers.
Another cause for optimism is that we were able to surpass our expected expense reduction goals for the quarter. After acquiring the Asset Intelligence unit from GE in January of 2010, our aggregate overhead expenses were over $31 million. Our goal was to that by $8 million annually through staff consolidations and other cutting measures.
For the third quarter, our combined SG&A and R&D expenses decreased almost 30% sequentially from the second quarter for an annualized expense reduction of approximately$9 million. As a result, I.D. Systems’ net loss for the third quarter of 2010 decreased more than 50% to $1.9 million from $4 million for the second quarter.
Looking ahead, we have introduced a new go-to-market strategy for our wireless vehicle management business with a product we call PowerBox. As Ken will discuss in more detail, PowerBox is a simplified version of our industrial industry-leading power fleet wireless vehicle management system, with a host of subscription models similar to the recurring service contract model of Asset Intelligence. We believe this host of subscription approach removes significant bottleneck in our sales cycle by avoiding any implementation burden on the customers’ IT organization and eliminating the need for any upfront capital outlays. The simplification of the product also makes channel sales effective. Consequently, we expect that PowerBox will drive more rapid growth in our industrial vehicle management segment and generate smoother stream of recurring revenue for the company.