Contact Information: Investor Relations Contact: Hawk Associates, Inc. Frank N. Hawkins, Jr. or Julie Marshall Phone: (305) 451-1888 Email: Email Contact
Providential Holdings Reports Q2 FY '07 Financial Results
Company Highlights Agreements With Saplastic and Dai Dung Co. and New Initiatives for Revenue Growth
| Source: Providential Holdings, Inc.
LOS ANGELES, CA and HO CHI MINH CITY, VIETNAM -- (MARKET WIRE) -- February 14, 2007 -- Providential
Holdings, Inc. (OTCBB : PRVH ) (German Stock Exchanges: PR7, WKN 935160), a
company providing international advisory services specializing in mergers
and acquisitions and also investing in the rapidly growing economies in
Vietnam and Asia, reported today its financial results for the second
fiscal quarter ended December 31, 2006.
The company reported revenues of $83,500 for the second quarter, as
compared with revenues of $347,500 for the same period last year.
Providential recognizes revenues associated with its consulting and
advisory services only upon completion of all contracted services. Although
no contracts were completed during the quarter, the company is currently
providing advisory services to three clients. Providential anticipates the
recognition of these revenues during the next one to two fiscal quarters.
Total operating expenses were $310,001 in the second quarter of 2007,
compared to $233,912 in the same quarter in the previous fiscal year. The
increase is attributed to slightly higher costs for salaries and wages,
which were offset by a slight decrease in general and administrative
expenses.
Net loss for the quarter was $333,166, compared to a net loss of $13,164 in
the second fiscal quarter 2006. Both quarters had earnings per share of
$0.00 based on the weighted average number of basic and diluted shares.
Providential Chairman and CEO Henry Fahman said, "Providential's presence
and expertise in Vietnam and the Pacific Rim continue to attract new
businesses and clients. We recently signed consulting agreements with two
promising companies, Dai Dung Co. and Saplastic. Our second quarter
financials do not reflect what we believe the true value of our contractual
agreements to be because we recognize revenue only once a contract is
completed, typically the day a client's shares begin trading in the U.S."
"During the quarter we became advisors to the Saigon A2 Fund, which aims to
provide early and mezzanine financing to Vietnamese companies, allowing
them to become publicly traded in Vietnam and the U.S. We signed a joint
venture agreement with Cavico Vietnam to build and operate a cement factory
in Phu Ly, Ha Nam Province, Vietnam and have already received an investment
license from the Vietnamese government for this project. We are very
encouraged by our prospects there. Additionally, we established an office
in Europe to facilitate oil and gas transactions between Russia, China and
Japan. We expect these new initiatives to generate substantial revenue and
create significant value for our shareholders in the near future."
About Providential Holdings, Inc.
Providential Holdings and its subsidiaries engage in a number of diverse
business activities, the most important of which are M&A advisory services
and independent energy. The company acquires and consolidates special
opportunities in selective high-growth industries to create additional
value, acts as an incubator for emerging companies and technologies, and
provides financial consultancy and M&A advisory services to U.S. and
foreign companies. For more information on Providential Holdings and its
subsidiaries, visit http://www.phiglobal.com. As part of its activities in
Vietnam, Providential has been hosting seminars in conjunction with the
Nasdaq Stock Market, the Vietnamese Chamber of Commerce and Industry and a
leading U.S. investment-banking firm, to help Vietnamese companies go
public and raise capital through the U.S. financial markets.
A profile for investors can be accessed at
http://www.hawkassociates.com/prvhprofile.aspx.
For investor relations questions regarding Providential, contact Frank
Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail:
info@hawkassociates.com, or visit http://www.americanmicrocaps.com or
http://www.hawkassociates.com
Safe Harbor: This news release contains forward-looking statements that are
subject to certain risks and uncertainties that may cause actual results to
differ materially from those projected on the basis of such forward-looking
statements. Such forward-looking statements are made based upon
management's beliefs, as well as assumptions made by, and information
currently available to, management pursuant to the "safe-harbor" provisions
of the Private Securities Litigation Reform Act of 1995.