Unable to Parse data from GPS Logger Shield

Now, I bought Ultimate GPS Logger Shield from Adafruit. Initially I loaded a 'blank' sketch into the Arduino
I am able to see the NEMA sentence perfectly.

This implies that the GPS is connected to the hardware serial pins.

SoftwareSerial mySerial(8, 7);

Adafruit_GPS GPS(&mySerial);

This implies that it is not.

Only one implication is correct. Which one?