We realized a decrease in gross margin percentage, to 49.4% in the third quarter compared to
65.7% in second quarter of 2015 and 66.5% in the third quarter of 2014. This decrease was primarily a result of the expanded battery recall explained above and in Note 3 under the heading Accrued Product Recall Costs. Other factors include
unfavorable foreign exchange rates, customer and geographic mix, and to a lesser extent limited competitive pricing pressures.
selling, general, administrative, research and development expenses were $55.6 million in the third quarter of 2015, an increase of $1.7 million from $53.9 million in the second quarter of 2015.
These summary results are more fully described in Results of Operations below.