Cost of Revenue and Gross Margin
Three months ended
August 312013 2012
Gross margin by segments (from continuing operations):
SSC 28.6 % 28.4 % EMS 4.9 % (2.7 )% SSIA 34.6 % 33.3 % Overall 23.9 % 21.9 % Our combined gross margin for the three months ended
August 31, 2013increased by approximately 2.0 percentage points compared to the three months ended August 31, 2012. Gross margin varies from period to period and can be affected by a number of factors, including material costs, product mix, production efficiency, and restructuring activities. Overall cost of revenues from continuing operations as a percentage of sales decreased in the three months ended August 31, 2013from 78.1% to 76.1% compared to the same period last year. The SSC segment cost of revenues remained consistent with the same period in 2012. The EMS segment cost of revenues for the three months ended August 31, 2013decreased by 7.6 percentage points compared with the same period in 2012, primarily as a result of restructuring charges taken in the prior year related to the EMS restructuring. The SSIA segment realized a decrease in cost of revenues of 1.3 percentage points mainly as a result of lower revenues attributable to a U.K.program completed in the third quarter of 2012 that consisted of products with higher cost of revenues. Combined restructuring costs recorded in the three months ended August 31, 2013were approximately $0.0 millioncompared to approximately $1.7 millionin the comparable period of 2012 related to the EMS restructuring.
General and Administrative Expenses
General and administrative expenses from continuing operations increased by approximately
$0.3 millionto $6.9 millionfor the three months ended August 31, 2013from $6.6 millionfor the three months ended August 31, 2012. The increase is primarily a result of an increase in amortization of intangible assets and higher accounting and legal services in the quarter. As a percentage of sales, general and administrative expenses were 11.0% for the three months ended August 31, 2013, compared to 11.3% for the three months ended August 31, 2012.