Third quarter 2011 revenue of $52.0 million represented a decrease of 9.0% compared to $57.1 million in the second quarter of 2011, and a decrease of 20.7% compared to $65.6 million in the third quarter of 2010. The decline was driven by the North American site closure and downsizings mentioned above, which accounted for $6.7 million of the decline compared to the second quarter of 2011. Revenue also declined due to the transition to a greater mix of offshore revenue which generates lower revenue but higher gross margins. These declines to revenue were partially offset by offshore revenue growth of $2.8 million.
Gross margin declined to 7.8% in the third quarter of 2011 compared to 11.0% in the second quarter of 2011 and 10.1% in the third quarter of 2010. The decrease was driven by lower U.S. and Canadian margins, which fell to 6.5% and 3.8%, respectively, due to site closures, as well as lower volumes and lower profitability in the sites that remain open. Offshore gross margin increased to 12.2% from 7.3% last quarter. Compared to last quarter, offshore gross profit dollars increased by $1.1 million on a $2.8 million revenue increase, representing incremental gross margin contribution of 36.6%.
SG&A expense for the quarter totaled $10.0 million, compared to $13.2 million in the second quarter of 2011 and $10.3 million in the third quarter of 2010. The decrease compared to the second quarter of 2011 was primarily due to the absence of $2.9 million in severance expense that impacted the second quarter.The Company reported third quarter 2011 negative adjusted EBITDA (adjusted for severance expense, impairment and restructuring charges and stock compensation expense) of $1.5 million compared to adjusted EBITDA of $0.5 million in the second quarter of 2011. The Company reported a net loss of $6.2 million, or $0.41 per share, during the third quarter of 2011, compared to $9.7 million, or $0.64 per share, during the second quarter of 2011.