SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


                                    FORM 10Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

FOR QUARTER ENDED DECEMBER 31, 1999                   COMMISSION FILE NO. 0-3415

                             STV GROUP, INCORPORATED
(Exact name of registrant as specified in its charter)


     Pennsylvania                                         23-1698231
(State or other jurisdiction of                 (I.R.S. Employer Identification)
 incorporation or organization)


205 West Welsh Drive, Douglassville, Pennsylvania                  19518
(Address of principal executive offices)                         (Zip Code)


                                      (610) 385-8200
(Registrant's telephone number, including area code)


Securities registered pursuant to Section 12(g) of the Act:


                           Common Stock $.50 par value
                                (Title of class)


As of December  31,  1999,  there were  3,836,818  shares of common stock of the
registrant outstanding.

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve months, (or for such shorter period that the registrant was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                           YES  X            NO


<PAGE>


                                TABLE OF CONTENTS


                                                                            Page

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS......................1

Part I:   FINANCIAL INFORMATION

          Item 1.   Financial Statements.......................................2

          Item 2.   Management's Discussion and Analysis of Financial
                    Condition and Results of Operation.........................6

          Item 3.   Quantitative and Qualitative Disclosures about Market Risk.8

Part II:  OTHER INFORMATION

          Item 1.   Legal Proceedings..........................................9

          Item 2.   Changes in Securities......................................9

          Item 3.   Defaults Upon Senior Securities............................9

          Item 4.   Submission of Matters to a Vote of Security Holders........9

          Item 5.   Other Information..........................................9

          Item 6.   Exhibits and Reports on Form 8-K...........................9

SIGNATURES....................................................................10





<PAGE>
            CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

Certain  oral  statements  made by  management  from  time to time  and  certain
statements  contained  herein,  including  certain  statements in  "Management's
Discussion and Analysis of Financial  Condition and Results of Operations"  such
as statements  regarding the Company's  ability to meet its liquidity  needs and
control costs, certain statements in Notes to Condensed  Consolidated  Financial
Statements,  and other statements  contained herein regarding  matters which are
not historical facts are forward looking  statements (as such term is defined in
the  Securities  Act of 1933) and  because  such  statements  involve  risks and
uncertainties,  actual  results may differ  materially  from those  expressed or
implied by such  forward  looking  statements.  Factors  that could cause actual
results to differ  materially  include,  but are not limited to those  discussed
below:

1.   The  Company's  ability to secure the capital and the related  cost of such
     capital necessary to fund its future growth.

2.   The  Company's   continued  ability  to  operate  in  a  heavily  regulated
     government  environment.  The Company's government contracts are subject to
     termination,  reduction  or  modification  as a result  of  changes  in the
     government's   requirements   or  budgetary   restrictions.   In  addition,
     government  contracts are subject to termination at the conveniences of the
     government. Under certain circumstances, the government can also suspend or
     debar  individuals  or  firms  from  obtaining  future  contracts  with the
     government.

3.   The level of competition  in the Company's  industry,  including  companies
     with significantly larger operations and resources than the Company.

4.   The  Company's  ability  to  identify  and  win  suitable  projects  and to
     consummate or complete any such projects.

5.   The Company's  ability to perform  design/build  projects which may include
     the  responsibility of ensuring the actual  construction of a project for a
     guaranteed price.

These and other  factors  have been  discussed  in more detail in the  Company's
Annual Report on Form 10-K for the fiscal year ended September 30, 1999.


                                       1

<PAGE>


                          PART I: FINANCIAL INFORMATION

Item 1.  Financial Statements

                    STV GROUP, INCORPORATED AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                 December 31, 1999   September 30, 1999
<S>                                                                <C>                  <C>
ASSETS
Current Assets
  Cash and Cash Equivalents                                            $2,385,000          $7,248,000
  Accounts Receivable                                                  34,524,000          30,590,000
  Costs and Estimated Profits of Uncompleted
    Contracts in Excess of Related Billings                            16,024,000          17,029,000
  Prepaid Expenses and Other Current Assets                               509,000             829,000
                                                                          -------             -------

  Total Current Assets                                                 53,442,000          55,696,000

Property and Equipment                                                  7,163,000           6,645,000

Less Accumulated Depreciation                                           5,032,000           4,832,000
                                                                        ---------           ---------

    Net Property and Equipment                                          2,131,000           1,813,000

Deferred Income Taxes                                                   2,443,000           2,443,000

Other Assets                                                              846,000             782,000
                                                                          -------             -------

      TOTAL                                                           $58,862,000         $60,734,000
                                                                      ===========         ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                                                   $6,020,000          $7,675,000
    Accrued Expenses                                                    9,002,000          10,211,000
    Billings on Uncompleted Contracts in Excess of
      Related Costs                                                    16,122,000          17,094,000
    Current portion of long term debt                                     103,000             110,000
    Deferred income taxes                                               2,137,000           2,137,000
    Income tax payable                                                  1,253,000             876,000
                                                                        ---------             -------

      Total Current Liabilities                                        34,637,000          38,103,000

  Long-Term Debt                                                        3,065,000           2,794,000
  Post-retirement Benefits                                              1,070,000           1,070,000

  Stockholders' Equity
    Common Stock                                                        2,043,000           2,041,000
    Capital in Excess of Par                                            3,461,000           3,445,000
    Retained Earnings                                                  15,357,000          14,052,000
                                                                       ----------          ----------

      Total                                                            20,861,000          19,538,000
        Less:  Treasury Stock                                             771,000             771,000
                                                                          -------             -------

      Total Stockholders' Equity                                       20,090,000          18,767,000

      TOTAL                                                           $58,862,000         $60,734,000
                                                                      ===========         ===========
</TABLE>


See notes to condensed consolidated financial statements.


                                       2
<PAGE>


                    STV GROUP, INCORPORATED AND SUBSIDIARIES

                        CONSOLIDATED STATEMENTS OF INCOME

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                    THREE MONTHS ENDED
                                                       December 31
                                                      1999         1998
<S>                                            <C>               <C>
Revenues

Total Revenues                                     $34,246,000       $34,221,000
Less Subcontract and Procurement Costs               6,846,000        11,362,000
                                                     ---------        ----------

Operating Revenue                                  $27,400,000       $22,859,000

Costs and Expenses

Costs of Services and Sales                         22,902,000        19,402,000
General and Administrative                           2,130,000         1,748,000
                                                     ---------         ---------

Total Costs and Expenses                            25,032,000        21,150,000

Interest Expense                                       (38,000)          (74,000)
Interest Income                                         93,000            73,000
                                                        ------            ------

Income Before Income Taxes                           2,423,000         1,708,000

Income Taxes                                         1,118,000           796,000
                                                     ---------           -------

Net Income                                          $1,305,000          $912,000
                                                    ==========          ========

Basic earnings per share:                                 $.34              $.24
Diluted earnings per share:                               $.31              $.22

</TABLE>

See notes to condensed consolidated financial statements.


                                       3
<PAGE>


                    STV GROUP, INCORPORATED AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                      THREE MONTHS ENDED
                                                                          December 31
                                                                     1999            1998
<S>                                                          <C>              <C>
Operating Activities
  Net Income                                                      $1,305,000        $912,000
  Adjustments to reconcile net income to
    net cash provided by operating activities
      Depreciation and Amortization                                  269,000         189,000
  Changes in Operating assets and liabilities
      Accounts Receivable                                         (3,934,000)       (881,000)
      Costs of uncompleted contracts in
        excess of billings and other current assets                1,325,000        (286,000)
      Accounts Payable and accrued expenses                       (2,593,000)         19,000
      Billing in excess of related costs                            (972,000)       (281,000)
      Current Income Taxes                                           377,000         435,000
                                                                     -------         -------
        Net Cash provided by operating activities                ($4,223,000)       $107,000

Investing Activities
  Purchase of Property and Equipment                                (518,000)       (189,000)
  Purchase of Software                                              (159,000)       (119,000)
  Decrease in other assets                                            26,000           2,000
                                                                      ------           -----
    Net Cash used in investing activities                          ($651,000)      ($306,000)

Financing Activities
  Proceeds from issuance of common stock                              18,000               0
  Principal payments on line of credit and long
    term borrowings                                                   (7,000)       (260,000)
                                                                      ------        --------
    Net Cash used in financing activities                            $11,000       ($260,000)

  Decrease in cash and cash equivalents                           (4,863,000)       (459,000)
  Cash and cash equivalents at beginning of year                   7,248,000       4,444,000
                                                                   ---------       ---------
  Cash and cash equivalents at end of period                      $2,385,000      $3,985,000
                                                                  ==========      ==========
</TABLE>


See notes to condensed consolidated financial statements.


                                       4
<PAGE>


        Notes to Condensed Consolidated Financial Statements (Unaudited)

                                December 31, 1999

1.    BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States for interim  financial  information  and with the  instructions to
Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all
of the information  and footnotes  required by accounting  principles  generally
accepted in the United States for complete financial statements.

In the opinion of management,  all adjustments  (consisting of normal  recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating  results for the three month  period  ended  December 31, 1999 are not
necessarily  indicative  of the results that may be expected for the fiscal year
ending September 30, 2000.

2.    USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States require management to make estimates and
assumptions  that affect the amounts  reported in the financial  statements  and
accompanying notes.
Actual results could differ from those estimates.

3.    EARNINGS PER SHARE

Basic  earnings  per share  (EPS) is  computed  by  dividing  net  income by the
weighted average number of shares of common stock outstanding during the period.
Diluted EPS recognizes the potential  dilutive effects of the future exercise of
common stock options.

<TABLE>
<CAPTION>
                                          THREE MONTHS ENDED
                                  Dec. 31, 1999         Dec. 31, 1998

<S>                              <C>                   <C>
Basic earnings per share                $0.34                 $0.24
Shares outstanding                  3,835,557             3,800,318

Diluted earnings per share              $0.31                 $0.22
Shares outstanding                  4,234,123             4,074,906
</TABLE>


                                       5

<PAGE>


Item 2. Management Discussion and Analysis of Financial Condition and Results of
        Operation

Results of Operations

Total  revenues for the quarter ended  December 31, 1999 (first  quarter  fiscal
2000) remained comparable to the first quarter of fiscal 1999 and decreased 6.7%
as compared to the previous  quarter,  primarily due to the decrease in revenues
related to pass-through  costs.  Operating  revenues  (total revenues  excluding
pass-through  costs)  increased 19.9% as compared to the first quarter of fiscal
1999 and increased 5.5% as compared to the previous quarter.

Pass-through  costs decreased 39.7% compared to the first quarter of fiscal 1999
and decreased 36.3% from the previous quarter. Pass-through costs vary depending
on  the  need  for  specialty   subconsultants   and  governmental   subcontract
requirements.

Costs of services, expressed as a percentage of operating revenues, decreased to
83.6% for the first  quarter of fiscal  2000 from 84.9% in the first  quarter of
fiscal 1999 and from 84.4% in the  previous  quarter.  While the decrease in the
percentages  from the first quarter of fiscal 1999 and the previous  quarter was
due to an increase in  operating  revenues  noted above,  the absolute  costs of
services also  increased  from the previous  quarter due to an increase in labor
related costs.

General and  administrative  expense,  expressed  as a  percentage  of operating
revenue,  is 7.8% in the first quarter of fiscal 2000 which is comparable to the
7.6%  recorded in the first  quarter of fiscal 1999 and a decrease  from 9.2% in
the  previous  quarter.  The  decrease  from the  previous  quarter is due to an
increase in operating revenues and a decrease in legal,  consulting,  and office
related expenses.

Interest  income,  net of interest  expense,  increased to $55,000 for the first
quarter of fiscal 2000 from net interest  expense of $1,000 in the first quarter
of fiscal 1999 and decreased from $76,000 in the previous quarter.


                                       6
<PAGE>


Income tax  expense  for the first  quarter of fiscal  2000 was 46.1% of pre-tax
income  compared  to 46.6% in the first  quarter of fiscal 1999 and 43.9% in the
previous quarter.  The increase from the previous quarter is due to the previous
quarter's  rate being reduced as a result of increased  pre-tax  income  derived
from the proceeds of a lawsuit settlement, reducing the effect of non-deductible
expenses.

Diluted  earnings per common share for the first quarter of fiscal 2000 was $.31
cents versus $.22 for the first quarter of fiscal 1999.

Financial Condition and Liquidity

Working  capital  increased  to  $18,805,000  from  $17,593,000  in the previous
quarter.  Subsequent  to December  31, 1999,  STV  completed  negotiations  with
another bank and obtained a $12,000,000  committed  line of credit.  The current
limit is a maximum of $12.0  million  based on the Company  maintaining  certain
financial covenants of which approximately $11.0 million is currently available.
The  Company  believes  that it and the  lender  will  maintain a line of credit
adequate to meet the  current and future  financial  needs of the  Company.  The
Company is  planning to continue  its  program of  purchasing  computer-assisted
design and drafting equipment.

The Company's backlog at December 31, 1999 is approximately $220 million.


Year 2000
The Year 2000 issue, or "The Y2K Bug" as it is sometimes  called,  is the result
of computer programs and equipment that were written and manufactured  using two
digits rather than four to define the applicable year.  Date-sensitive  computer
programs and equipment may recognize a date using only the last two digits. This
could result in the year 2000 being recognized as the year 1900. System failures
or miscalculations can occur, which would cause disruptions in operations and/or
the inability to process normal business transactions.  The Company is not aware
of any significant adverse effects of Year 2000 on its systems and operations.


                                       7
<PAGE>


Item 3.  Quantitative and Qualitative Disclosures about Market Risk.
Market risk exposures to the Company are not material.


                                       8
<PAGE>


                           PART II: OTHER INFORMATION

Item 1.    Legal Proceedings

           Not applicable.

Item 2.    Changes in Securities

           Not applicable.

Item 3.    Defaults Upon Senior Securities

           Not applicable.

Item 4.    Submission of Matters to Vote of Security Holders

           Not applicable.

Item 5.    Other Information

           Not applicable.

Item 6.    Exhibits and Reports on Form 8-K

           (a)   Exhibits

                 The following are filed as exhibits to Part I of this Form 10Q:

                 Exhibit 10.35 - Letter Agreement with PNC Bank

                 Exhibit 10.36 - Committed Line of Credit Note with PNC Bank

                 Exhibit 10.37 - Security Agreement with PNC Bank

                 Exhibit 10.38 - Reimbursement Agreement for Standby Letter(s)
                                 of Credit with PNC Bank

                 Exhibit 27 - Financial Data Schedule

           (b)   Reports on Form 8-K

                 The Company  filed no reports on Form 8-K for the quarter ended
                 December 31, 1999.


                                       9
<PAGE>


SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.







STV GROUP, INCORPORATED
     (Registrant)




  February 14, 2000                   By:  /s/ Dominick M. Servedio
----------------------                     -------------------------------------
       Date                                Dominick M. Servedio
                                           President and Chief Executive Officer






  February 14, 2000                   By:  /s/ Peter W. Knipe
----------------------                     -------------------------------------
     Date                                  Peter W. Knipe
                                           Chief Financial Officer


                                       10