This article is about how damage is applied. On how it is calculated see an article on the appropriate Tactical Combat#[Weapon Type]:

TODO damage rolls;

Damage Absorbtion

Damage is absorbed by various defensive portions of a target ship (or orbital base) as follows:

Shields

Shields are the first line of defense against damage. A shield has 4 facings, spread in 90-degree arcs. If the target has shields, whichever shield facing is hit absorbs as much damage as possible. The current strength of that shield facing determines how much damage it is possible for that shield to absorb before falling. Once the shield strength reaches zero, that shield falls (at least for the rest of that combat round) and the remaining damage continues on. The class rating of a shield is important in that this is the amount of damage taken off EACH attack as long as the shield generator is working. This amount comes off BEFORE any damage is done to shield strength. So, even if the strength of a shield is 0, as long as the shield generator is intact, a class V shield takes off 5 points of damage from each attack.

The strength of each shield facing (the amount of damage it can absorb) is determined by multiplying the shield class (I, III, V, VII, X) times the shields hull multiplier (5, 10, 15, 20, 25, 35).

Armor

Armor is the second line of defense. A layer of ultra-tough alloy coats the entire hull and absorbs damage that might otherwise breach the hull and destroy vital internal systems. When damage penetrates the shields, the armor absorbs as much as it can.

Structure

Structure is what holds the ship together. Any damage that gets past both the shields and armor has a good chance of hurting the target’s structural integrity. Any such damage lessens the structural strength of the vessel. When this reaches zero, the target explodes.

Internal Systems

Internal Systems are the basic functional parts of the vessel: the drive, targeting computer, shield generator, weapons, and special devices. Any damage that passes the shields and armor and does not do structural injury hits the internal systems. Which system suffers the damage is somewhat random, but larger systems tend to get hit more often, due to their size. When any system takes enough damage, it is destroyed. The remaining damage moves on to the next internal system, until all of the damage has been applied.

If the drive is damaged, the ship’s ability to move is compromised. When a drive is destroyed, the vessel undergoes an uncontrolled drive reaction. The resulting explosion destroys that target and damages everything within a 6 square radius of the blast.

Crew

Crew on duty inside a ship take certain risks. One is the chance to be killed by the consequential effects of damage to the ship. In addition to damaging the ship, each point of damage that penetrates both the shields and armor has a 1% chance of killing a crew member (Marine).