It could very well be a cold solder joint, if not on the SMA connector itself perhaps under the chip. Contact our technical support department, tell them I sent you, and they’ll arrange an exchange. Sorry for the inconvenience!
EDIT: position pinning freezes the output if it’s not moving past a certain distance. Hmmm, which sounds like what you’re seeing. One thing you could try, if you haven’t, is to go for a drive with the unit (get moving), and see if the updates are more frequent. You can turn position pinning on and off (along with many other things) by using the GPS Viewer / Configuration Software linked above; I don’t believe it’s set by default though. To use the above software “through” an Arduino, you can write a pass-through sketch that takes data from your software serial port and passes it to the hardware port and vice-versa (you’ll need both RX and TX lines to change any settings). Then you have the GPS software talk to your Arduino’s COM port. But our tech support people can help you in any case. Let us know what you find!