SOURCE: Providential Holdings, Inc.

February 14, 2007 16:30 ET

Providential Holdings Reports Q2 FY '07 Financial Results

Company Highlights Agreements With Saplastic and Dai Dung Co. and New Initiatives for Revenue Growth

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.

Contact Information

  • Investor Relations Contact:
    Hawk Associates, Inc.
    Frank N. Hawkins, Jr. or Julie Marshall
    Phone: (305) 451-1888
    Email: Email Contact