import subprocess

contents = subprocess.check_output('cat xxx',shell=True)
for l in contents.splitlines():
    e = l.split()
    number = int(e[2],base=16)
    print(e[0],e[1],number>>4&1,number>>3&1,number&0b111)

p = Popen(['cat', xxx], stdout=PIPE)

for line in iter(p.stdout.readline, ''):
    process_content(line) # process_content の実装方法は @takoika さんの回答にご参考