It's (to me) more plausible that they are just incompetent and lack the manpower/skills to produce more units at a faster pace. Again, just my opinion.
Really, once they had the designs ready, why didn't they have the units built in China instead of making themselves? It's like Apple making iPhones themselves, by the time the iPhone 5 was announced they'd still be working on the backlog of iPhone 4 orders.
My reading of past blog/forum posts was that perhaps fpgas were built off site, leading to quality issues, so they brought production in house, which was supposed to be a plus (ie more control over production quality, etc). It's just that they failed to realize how arduous the assembly task would be. Hopefully, for their sake and that of their customers, monarch production will be done offshore, and they can either direct the producer where to ship final orders or they accept bulk shipments to their facility for testing and burn-in and then reship to customers
I'm all for made in the USA and jobs, but electronics assembly done in the US? No way, far too expensive for no benefit at all.