Cam timing simply means your cam and pistons are in proper time. For a 22re that means your timing chain is properly aligned on both the bottom sprocket (crank) and the top sprocket (cam). If there not in proper time, then your cam is opening and closing valves when there not suppose to be open or closed. If it's off by a link or two, then the valve will be partially open when it needs to be completely shut...thus allowing air to escape and showing a low compression reading.
The bad thing is, once the timing cover is on, it's hard to make sure everything is lined up. One can be "pretty" sure by just looking at the cam sprocket and having the engine at TDC on the compression stroke...there should be the odd color link at about 11:45. If it's off, then it's impossible to have correct compression.
I would confirm CAM timing and then a leakdown test will tell you if the rings are worn...