It the extreme cost is legitimate and not due to (a) someone f*ing something up (happens), or (b) some one-off, non core R&D type process, then it's pretty concerning because as noted above the production cost was 60% of the revenue in that quarter. This means we are definitely not, and nowhere near, profitable. When some big event like the hurricane hits we want to be even more profitable, not lose any profitability.
Equivalent is to imagine a widget factory selling $1 widgets which use 15c of materials all of a sudden, during a busy period, realizes that they are using 60c of materials. This would be extremely concerning.
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