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, 2000                   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)

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
                               -----            -----

As of December  31,  2000,  there were  3,878,128  shares of common stock of the
registrant outstanding.


<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...7

Part II: OTHER INFORMATION

         Item 1.  Legal Proceedings............................................8

         Item 2.  Changes in Securities........................................8

         Item 3.  Defaults Upon Senior Securities..............................8

         Item 4.  Submission of Matters to a Vote of Security Holders..........8

         Item 5.  Other Information............................................8

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

SIGNATURES.....................................................................9





<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, 2000.


                                       1
<PAGE>


                          PART I: FINANCIAL INFORMATION

Item 1.  Financial Statements

                             STV GROUP, INCORPORATED

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                         December 31, 2000   September 30, 2000
                                                         -----------------   ------------------

<S>                                                        <C>                <C>
ASSETS
------
Current Assets:
  Cash and cash equivalents                                    $1,088,000          $3,382,000
  Accounts receivable                                          37,776,000          36,282,000
  Costs and estimated profits of uncompleted
    contracts in excess of related billings                    22,950,000          18,404,000
  Prepaid expenses and other current assets                       670,000             915,000
                                                                  -------             -------

  Total Current Assets                                         62,484,000          58,983,000

Property and equipment                                          7,998,000           7,655,000

Less accumulated depreciation                                   5,038,000           4,767,000
                                                                ---------           ---------

    Net property and equipment                                  2,960,000           2,888,000

Deferred income taxes                                           3,061,000           2,852,000

Other assets                                                    1,089,000             903,000
                                                                ---------             -------

      TOTAL                                                   $69,594,000         $65,626,000
      -----                                                   ===========         ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
  Current Liabilities:
    Deferred compensation                                          95,000             100,000
    Accounts payable                                          $12,087,000          $9,025,000
    Accrued expenses                                           10,260,000          11,839,000
    Billings on uncompleted contracts in excess of
      related costs and estimated profits                      12,838,000          12,514,000
    Deferred income taxes                                       2,172,000           1,983,000
    Income tax payable                                          1,354,000             933,000
                                                                ---------             -------

      Total Current Liabilities                                38,806,000          36,394,000

  Deferred compensation                                         4,299,000           3,886,000
  Post-retirement benefits                                      1,200,000           1,200,000

  Stockholders' Equity:
    Common stock                                                2,063,000           2,053,000
    Capital in excess of par                                    3,640,000           3,546,000
    Retained earnings                                          20,357,000          19,318,000
                                                               ----------          ----------

      Total                                                    26,060,000          24,917,000
        Less:  Treasury stock                                     771,000             771,000
                                                                  -------             -------

      Total Stockholders' Equity                               25,289,000          24,146,000

      TOTAL                                                   $69,594,000         $65,626,000
      -----                                                   ===========         ===========
</TABLE>


See notes to condensed consolidated financial statements.


                                       2
<PAGE>


                             STV GROUP, INCORPORATED

                        CONSOLIDATED STATEMENTS OF INCOME

                                   (UNAUDITED)

                               THREE MONTHS ENDED
<TABLE>
<CAPTION>

                                                         December 31
                                                    2000             1999
                                                -----------------------------
<S>                                         <C>               <C>

Revenues

Total revenues                                  $43,823,000       $34,245,000
Less subcontract and procurement costs           13,656,000         6,845,000
                                                 ----------         ---------

Operating revenue                               $30,167,000       $27,400,000

Costs and expenses

Costs of services                                25,977,000        22,903,000
General and administrative                        2,273,000         2,130,000
                                                  ---------         ---------

Total costs and expenses                         28,250,000        25,033,000

Miscellaneous income, net                             6,000             1,000
Interest expense                                    (44,000)          (38,000)
Interest income                                      83,000            93,000
                                                     ------            ------

Income before income taxes                        1,962,000         2,423,000

Income taxes                                        923,000         1,118,000
                                                    -------         ---------

Net income                                       $1,039,000        $1,305,000
                                                 ==========        ==========

Basic earnings per share:                              $.27              $.34
Diluted earnings per share:                            $.25              $.31
</TABLE>


See notes to condensed consolidated financial statements.


                                       3
<PAGE>


                             STV GROUP, INCORPORATED

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                           THREE MONTHS ENDED
                                                                               December 31
                                                                           2000            1999
                                                                       ----------------------------

<S>                                                                 <C>              <C>
Operating Activities
--------------------
  Net income                                                            $1,039,000       $1,305,000
  Adjustments to reconcile net income to
    net cash provided by operating activities
      Depreciation and amortization                                        364,000          270,000
  Deferred income taxes                                                    (20,000)               0
  Loss on disposal of property and equipment                                 1,000                0
  Changes in operating assets and liabilities
      Accounts receivable                                               (1,494,000)      (3,934,000)
      Costs of uncompleted contracts in excess of billings,
        other current assets and other assets                           (4,460,000)       1,350,000
      Accounts payable and accrued expenses                              1,891,000       (2,600,000)
      Billings on uncompleted contracts in excess of related costs         324,000         (972,000)
      Income taxes payable                                                 421,000          377,000
                                                                           -------          -------
        Net cash used in operating activities                          $(1,934,000)     $(4,204,000)

Investing Activities
--------------------
  Purchase of property and equipment                                     $(348,000)       $(518,000)
  Purchase of software                                                    (116,000)        (159,000)
                                                                          --------         --------
        Net cash used in investing activities                            $(464,000)       $(677,000)

Financing Activities
--------------------
  Proceeds from issuance of common stock                                  $104,000          $18,000
                                                                          --------          -------
        Net cash provided by financing activities                         $104,000          $18,000

  Decrease in cash and cash equivalents                                 (2,294,000)      (4,863,000)
  Cash and cash equivalents at beginning of year                         3,382,000        7,248,000
                                                                         ---------        ---------
  Cash and cash equivalents at end of period                            $1,088,000       $2,385,000
                                                                        ==========       ==========
</TABLE>


See notes to condensed consolidated financial statements.


                                       4
<PAGE>


        Notes to Condensed Consolidated Financial Statements (Unaudited)

                                December 31, 2000

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, 2000 are not
necessarily  indicative  of the results that may be expected for the fiscal year
ending September 30, 2001.

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, 2000         Dec. 31, 1999

<S>                              <C>                   <C>

Basic earnings per share                $0.27                 $0.34
Shares outstanding                  3,866,040             3,835,557

Diluted earnings per share              $0.25                 $0.31
Shares outstanding                  4,203,835             4,234,123
</TABLE>

4.       RECLASSIFICATIONS

Certain amounts for 1999 in the accompanying  consolidated  financial statements
have been reclassified to conform to the 2000 presentation.


                                       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, 2000 (first  quarter  fiscal
2001)  increased  28.0% as  compared  to the first  quarter  of fiscal  2000 and
increased  12.2% as  compared  to the  previous  quarter,  primarily  due to the
increase in revenues related to pass-through  costs.  Operating  revenues (total
revenues excluding  pass-through costs) increased 10.1% as compared to the first
quarter of fiscal 2000 and increased 3.5% as compared to the previous quarter.

Pass-through  costs increased 99.5% compared to the first quarter of fiscal 2000
and increased 37.6% 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, increased to
86.1% for the first  quarter of fiscal  2001 from 83.6% in the first  quarter of
fiscal 2000 and is comparable to 86.2% in the previous quarter.  The increase in
the  percentage  from the  first  quarter  of fiscal  2000 was due  mainly to an
increase in information technology expenses, labor and labor related costs.

General and  administrative  expense,  expressed  as a  percentage  of operating
revenue,  is 7.5% in the first quarter of fiscal 2001,  which is a decrease from
7.8%  recorded in the first  quarter of fiscal 2000 and is comparable to 7.6% in
the  previous  quarter.  While the  decrease  in the  percentage  from the first
quarter of fiscal 2000 was due mainly to an increase in operating revenues noted
above,  absolute  costs  increased  due to an  increase  in  corporate  training
expenses.

Miscellaneous  income,  net  increased to $6,000 for the first quarter of fiscal
2001 from $1,000 in the first quarter of fiscal 2000 and decreased  from $28,000
in the previous quarter.

Interest  income,  net of interest  expense,  decreased to $39,000 for the first
quarter of fiscal 2001 from net interest  income of $55,000 in the first quarter
of fiscal 2000 and increased from net interest  income of $3,000 in the previous
quarter.


                                       6
<PAGE>
Income tax  expense  for the first  quarter of fiscal  2001 was 47.0% of pre-tax
income  compared  to 46.1% in the first  quarter of fiscal 2000 and 46.1% 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  an  insurance   settlement,   reducing  the  effect  of
non-deductible expenses.

Diluted  earnings per common share for the first quarter of fiscal 2001 was $.25
cents versus $.31 for the first quarter of fiscal 2000.

Financial Condition and Liquidity
---------------------------------

Working capital  increased to $23,678,000 at December 31, 2000 from  $22,589,000
at September 30, 2000.  The Company has a $12,00,000  committed  line of credit.
The agreement  provides that the Company may borrow up to $10,000,000  and issue
letters of credit up to  $2,000,000  and  requires  the Company to meet  certain
financial covenants.  Approximately  $10,455,000 is available on the $12,000,000
line of credit. 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, 2000 is approximately $240 million.


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

Market risk exposures to the Company are not material.


                                       7
<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

                 Not applicable.

           (b)   Reports on Form 8-K

                 The Company  filed no reports on Form 8-K for the quarter ended
                 December 31, 2000.


                                       8
<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, 2001                   By:  /s/ Dominick M. Servedio
----------------------                     -------------------------------------
       Date                                Dominick M. Servedio
                                           President and Chief Executive Officer






  February 14, 2001                   By:  /s/ Peter W. Knipe
---------------------                      -------------------------------------
     Date                                  Peter W. Knipe
                                           Chief Financial Officer


                                       9