Posted 19 June 2013 - 11:24 AM
Yes. The border outline is your armor. The colored interior of each section is your internals. After armor is gone, your internals take damage until they are destroyed and you either loose the section of your mech or your mech dies (in the case of both your legs are destroyed, your head, your center torso, or, if you have an XL engine, either of your side torsos)
To add: Once armor is gone, there is a chance to loose the components in that section each time it takes damage (called critical hits). Also, your armor is divided between front/rear for the torsos, but the internal part is one and the same for front/rear.