Yes, that is the case you do not win the auction. Reserve mean just that, it's a way for the owner to ensure he will not lose money if the item only get few low ball bids the owner has reserver the right not to sell his item if the bids do not rise to a preset minimum price. This is also true in a lot of live auctions.
Think about this way, would you want to sell your 98% colt 1st. gen. S.A.A. with a 4 figure actual value for only $150.00 just because only one guy bib on it with a very, very low opening bid.