Anyone know?

I have a brand new DSS 306 low compression (8.5-1) engine. On it I have TF twisted wedge heads(2.02-1.60) TF Stage 2 cam, Track heat intake, 73 CL mass air, 65TB, with 1.6RR. I took it to the dyno to have it run and the results were 278 HP! To me, for all the mods on this engine that seems really really low! I've seen people with the same kind of set up with well over 300HP. I'm concerned. The only thing I can think of is its because of the low compression, but could that be it....I have no clue. It was built for a supercharger, which is why the compression is so low, but If the engine is not functioning properly, I'm afraid to put money into it. Is this HP reading accurate? If so why with all of these mods? Thanks if you got any ideas.
TQ
 
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