SHOP is moving away from hosting it’s own data and is moving into the Cloud. They are now using 3rd party Cloud providers. They had accelerated depreciation for the equipment that they previous purchased and no longer need. They are also paying for both their equipment and the Cloud outsourcing so their margins were lower in Q1 and will also be lower in Q2 and Q3. In Q4 margins will be higher but still a bit below what they had in Q4 2017. We can think of this as a one time hit to margins and they will revert back to the high 70s.
Chris