No, its supposed to work like that.
From the 1.07 patch:
Code:
36. Fixed   - Results of Ship states:
                No Supply        - 1 movement point. Cannot cloak.
                Critical Failure - Half normal movement points. Cannot resupply or reordnance others.
                                   Half attack and defense modifier. Cannot cloak.
                Mothballed       - 0 movement points. Cannot resupply or reordnance others. Cannot cloak.
                                   0 Supplies and Ordnance. 0 Crew. 0 Shields. 0 attack and defense modifier.
                                   No spaceyard capabilities.
                Cloaked          - Cannot resupply or reordnance others. No spaceyard capabilities.
              Critical Failure = Loss of your bridge, all life support, all crew quarters, or all your crew 
              (a Master Computer when present, replaces the previous criteria).