Stockholder's Equity

(a) Stock Equity and Incentive Plan

The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation. Stock-based compensation expense, excluding compensation charges related to our employee stock purchase plan, or the ESPP, was $849 and $785 for the three months ended September 30, 2018 and 2017, respectively, and $2,417 and $2,577 for the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018, there was $2,621 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 3.00 years. As of September 30, 2018, there was $4,192 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.26 years.

Stock Options

During the three months ended September 30, 2018, 22 stock options were exercised for common stock. Additionally, during the three months ended September 30, 2018, no stock options were granted and 65 stock options expired, were canceled or were forfeited.

During the nine months ended September 30, 2018, 35 stock options were exercised for common stock, none of which was delivered to the Company as payment for the exercise price or related minimum tax withholding obligations. Additionally, during the nine months ended September 30, 2018, 401 stock options were granted with a weighted average grant date fair value of $3.82 per share and 152 stock options expired, were canceled or were forfeited. The Company has estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions utilized to determine the fair value of options granted during the nine months ended September 30, 2018 and 2017 were as follows:




	Nine Months Ended September 30,
	2018		2017
Risk-free interest rate	2.81	%	1.96	%
Expected volatility	36.60	%	35.53	%
Expected life (in years)	4.29		4.22
Dividend yield	0	%	0	%

As of September 30, 2018, there were 1,281 options outstanding with a weighted average exercise price of $10.27 per share and 343 options exercisable with a weighted average exercise price of $10.89 per share.

Restricted Stock

During the three months ended September 30, 2018, 45 shares of restricted stock were granted with a weighted average grant date fair value of $12.65 per share and no shares of restricted stock were forfeited. Additionally, during the three months ended September 30, 2018, 10 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock.

During the nine months ended September 30, 2018, 199 shares of restricted stock were granted with a weighted average grant date fair value of $11.47 per share and 19 shares of restricted stock were forfeited. Additionally, during the nine months ended September 30, 2018, 247 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock.

As of September 30, 2018, there were 538 shares of restricted stock outstanding still subject to service-based vesting conditions.

As of September 30, 2018, the Company had no shares of restricted stock that were subject to performance-based or market-based vesting conditions.

(b) Employee Stock Purchase Plan

The Company's Amended and Restated 1996 Employee Stock Purchase Plan (ESPP) affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the three and nine months ended September 30, 2018, 17 shares were issued under the ESPP plan. During the three and nine months ended September 30, 2017, 0 and 26 shares were issued under the ESPP plan, respectively. The Company recorded compensation charges related to the ESPP of $11 and $24 for the three months ended September 30, 2018 and 2017, respectively, and $35 and $44 for the nine months ended September 30, 2018 and 2017, respectively.

The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Cost of product sales	$	40	$	68	$	122	$	222
Cost of service sales	—		—		—		1
Research and development	177		155		496		514
Sales, marketing and support	138		190		485		679
General and administrative	505		396		1,349		1,205
	$	860	$	809	$	2,452	$	2,621

(d) Accumulated Other Comprehensive Loss

Comprehensive income (loss) includes net income (loss), unrealized gains and losses from foreign currency translation, unrealized gains and losses from available for sale marketable securities and changes in fair value related to interest rate swap derivative instruments, net of tax attributes, which were not material. The components of the Company’s comprehensive income (loss) and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive income (loss).

The balances for the three months ended September 30, 2018 and 2017 are as follows:



	Foreign Currency Translation			Unrealized Gain (Loss) on Available for Sale Marketable Securities		Interest Rate Swaps			Total Accumulated Other Comprehensive Loss
Balance, June 30, 2018	$	(12,669	)	$	—	$	(32	)	$	(12,701	)
Other comprehensive loss before reclassifications	(763		)	—		—			(763		)
Amounts reclassified from AOCI to Other income, net	—			—		12			12
Net other comprehensive (loss) income, September 30, 2018	(763		)	—		12			(751		)
Balance, September 30, 2018	$	(13,432	)	$	—	$	(20	)	$	(13,452	)



	Foreign Currency Translation			Unrealized Gain (Loss) on Available for Sale Marketable Securities			Interest Rate Swaps			Total Accumulated Other Comprehensive Loss
Balance, June 30, 2017	$	(13,610	)	$	(3	)	$	(113	)	$	(13,726	)
Other comprehensive income before reclassifications	1,956			2			1			1,959
Amounts reclassified from AOCI to Other income, net	—			—			18			18
Net other comprehensive income, September 30, 2017	1,956			2			19			1,977
Balance, September 30, 2017	$	(11,654	)	$	(1	)	$	(94	)	$	(11,749	)

The balances for the nine months ended September 30, 2018 and 2017 are as follows:



	Foreign Currency Translation			Unrealized Gain (Loss) on Available for Sale Marketable Securities			Interest Rate Swaps			Total Accumulated Other Comprehensive Loss
Balance, December 31, 2017	$	(11,247	)	$	(1	)	$	(69	)	$	(11,317	)
Other comprehensive (loss) income before reclassifications	(2,185		)	1			11			(2,173		)
Amounts reclassified from AOCI to Other income, net	—			—			38			38
Net other comprehensive (loss) income, September 30, 2018	(2,185		)	1			49			(2,135		)
Balance, September 30, 2018	$	(13,432	)	$	—		$	(20	)	$	(13,452	)



	Foreign Currency Translation			Unrealized Gain (Loss) on Available for Sale Marketable Securities			Interest Rate Swaps			Total Accumulated Other Comprehensive Loss
Balance, December 31, 2016	$	(16,651	)	$	—		$	(158	)	$	(16,809	)
Other comprehensive income (loss) before reclassifications	4,997			(1		)	5			5,001
Amounts reclassified from AOCI to Other income, net	—			—			59			59
Net other comprehensive income (loss), September 30, 2017	4,997			(1		)	64			5,060
Balance, September 30, 2017	$	(11,654	)	$	(1	)	$	(94	)	$	(11,749	)

For additional information, see Note 4, "Marketable Securities," and Note 17, "Derivative Instruments and Hedging Activities."