Yes, that means Apache doesn't identify your script as a special (executable) file. You should put the script in the cgi-bin directory (usually something like /var/www/cgi-bin), make it executable to everyone (well at least to the apache user of course), and check that your apache config 1) supports cgi 2) manage scripts with the .cgi extension. Something like :

# you should have this one
LoadModule cgi_module modules/mod_cgi.so

# and this one
ScriptAlias /cgi-bin/ "/var/www/cgi-bin/"

<Directory "/var/www/cgi-bin">
    AllowOverride None
    Options None
    Order allow,deny
    Allow from all
</Directory>

# and this to manage the .cgi extension
AddHandler cgi-script .cgi
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