CIS continues to invest in applying new technologies to our solutions. We entered a partnership agreement with Huawei Mobile to provide solutions for mobile platform the project is on track and we have completed three off four projects on a platform have already gone live. In third quarter of 2012, the net revenue increased 15.7% to $63 million from $54.5 million in the year ago quarter and the increase is slightly from $32.1 million in the second quarter. The seasonality of our business typically result in higher quarter revenue in the second half of the year.
Enterprise Application Service, EAS net revenues increased 1.8% year-over-year to $41.9 million in the quarter and also increased 1.6% from the prior quarter.
the gross profit increased 59.0% to $17.2 million from $10.8 million in the year ago quarter. Adjusted gross profit increased 36.2% to $17.2 million from $12.6 million in the year-ago quarter. The gross margin was 27.3% in the quarter, as compared to 19.8% in the year-ago quarter. The adjusted gross margin was also 27.3%, as compared to 23.2% in the year ago quarter due to an improvement in utilization of the IT team. Adjusted net income contributable to Camelot for the third quarter of 2012 was $5.8 million, or $0.13 for ADS as compared to adjusted net loss of $0.5 million in the year ago quarter or loss of a penny per ADS. As of September 30, 2012, the company had $66.9 million in cash, cash equivalents, term deposits and short-term investments. The company is trading below cash on hand. For the whole year, we now expect $252 million and adjusted net income of $10.5 million, or $0.24 for EAS. Based on $44.4 million diluted ADS, which is below our previous estimation of the revenue, and approximately $266 million and adjusted income of $18 million or $0.38 per ADS.
For the fourth quarter 2012, we expect revenue of approximately $70 million and adjusted net loss of $0.2 million, or $0.00 per diluted ADS based on $44.4 million diluted ADS. They feel the economy has bottomed .
Camelot's headcount increased to 5,966 as of September 30, 2012,