I'll talk about our expectations for Q4 just later. But now, I'll go through our Q3 financial results. Q3 financial headlines include our EPS from continuing operations for the quarter of $0.05 and we generated $20 million cash flow from continuing operations. Looking at the P&L for the quarter, as I mentioned Q3 orders were $170 million up 11% versus last year. And sales of $182 million were up 12% versus last year.
Gross margin improved slightly in the quarter to 25.1%. Operating expenses or SG&A were $40 million up $7 million from last year. The increase in SG&A versus last year is due to inclusion of SG&A costs from the acquired businesses and the newly formed FSTech group which were not in last year's P&L as well as higher costs associated with the company's and hearing loss litigation.
The SG&A cost include $1.1 million increase in depreciation and amortization related to the acquisitions. Operating income excluding restructuring charges in both years was down about $2 million versus last year due to higher SG&A costs. Reported EPS from continuing operations was $0.05 for the quarter. The EPS comparison versus last year is impacted by the higher number of outstanding shares, as a result of the equity operating we completed in May.
On Slide 4, we show the results by segment for the quarter. For purposes of comparability we've excluded restructuring charges on the slide. The segment show reflect the new operating group structure we begin in Q2 and prior years have been restated for the transfer of our PIPS and Parking businesses from our safety and security group to the FSTech group.Safety and security group or SSG generated $5.3 million of operating income in the quarter resulting in 10.4% operating margin, which was a slight improvement versus last year. Q3 orders and revenue for SSG were impacted by weakness in the domestic and European markets for lightbars and sirens, which more than offset growth in our core industrial safety products. Read the rest of this transcript for free on seekingalpha.com