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 MARCH 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 March 31,  2000,  there  were  3,841,318  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...........................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

                           CONSOLIDATED BALANCE SHEETS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                              March 31, 2000     September 30, 1999
<S>                                                            <C>                 <C>
ASSETS
Current Assets
  Cash and cash equivalents                                        $2,417,000          $7,248,000
  Accounts receivable                                              32,576,000          30,590,000
  Costs and estimated profits of uncompleted
    contracts in excess of related billings                        18,322,000          17,029,000
  Prepaid expenses and other current assets                           368,000             829,000
                                                                      -------             -------

  Total Current Assets                                             53,683,000          55,696,000

Property and equipment                                              7,025,000           6,645,000

Less accumulated depreciation                                       4,266,000           4,832,000
                                                                    ---------           ---------

    Net property and equipment                                      2,759,000           1,813,000

Deferred income taxes                                               2,664,000           2,443,000

Other assets                                                          913,000             782,000
                                                                      -------             -------

      TOTAL                                                       $60,019,000         $60,734,000
                                                                  ===========         ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Accounts payable                                               $7,565,000          $7,675,000
    Accrued expenses                                               11,146,000          10,211,000
    Billings on uncompleted contracts in excess of
      related costs                                                12,678,000          17,094,000
    Current portion of long term debt                                 105,000             110,000
    Deferred income taxes                                           1,740,000           2,137,000
    Income tax payable                                                921,000             876,000
                                                                      -------             -------

      Total Current Liabilities                                    34,155,000          38,103,000

  Long-term debt                                                    3,302,000           2,794,000
  Post-retirement benefits                                          1,140,000           1,070,000

  Stockholders' Equity
    Common stock                                                    2,045,000           2,041,000
    Capital in excess of par                                        3,478,000           3,445,000
    Retained earnings                                              16,670,000          14,052,000
                                                                   ----------          ----------

      Total                                                        22,193,000          19,538,000
        Less:  Treasury stock                                         771,000             771,000
                                                                      -------             -------

      Total Stockholders' Equity                                   21,422,000          18,767,000

      TOTAL                                                       $60,019,000         $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             SIX MONTHS ENDED
                                                      March 31                      March 31
                                                 2000          1999             2000           1999
<S>                                       <C>            <C>              <C>            <C>
Revenues

Total revenues                               $36,538,000    $33,345,000      $70,784,000    $67,566,000
Less subcontract and procurement costs         8,030,000      9,587,000       14,876,000     20,949,000
                                               ---------      ---------       ----------     ----------

Operating Revenue                            $28,508,000    $23,758,000      $55,908,000    $46,617,000

Costs and Expenses

Costs of services and sales                   23,828,000     19,955,000       46,730,000     39,357,000
General and administrative                     2,264,000      2,115,000        4,394,000      3,863,000
                                               ---------      ---------        ---------      ---------

Total Costs and Expenses                      26,092,000     22,070,000       51,124,000     43,220,000

Interest expense                                 (43,000)       (40,000)         (81,000)      (114,000)
Interest income                                   65,000         78,000          158,000        151,000
                                                  ------         ------          -------        -------

Income Before Income Taxes                     2,438,000      1,726,000        4,861,000      3,434,000

Income taxes                                   1,125,000        816,000        2,243,000      1,612,000
                                               ---------        -------        ---------      ---------

Net Income                                    $1,313,000       $910,000       $2,618,000     $1,822,000
                                              ==========       ========       ==========     ==========

Basic earnings per share:                           $.34           $.24             $.68           $.48
Diluted earnings per share:                         $.31           $.22             $.62           $.44
</TABLE>


See notes to condensed consolidated financial statements.


                                       3
<PAGE>
                    STV GROUP, INCORPORATED AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                      SIX MONTHS ENDED
                                                                           March 31
                                                                     2000            1999
<S>                                                            <C>              <C>
Operating Activities
  Net Income                                                      $2,618,000       $1,822,000
  Adjustments to reconcile net income to
    net cash provided by operating activities:
      Depreciation and amortization                                  577,000          421,000
      Deferred income taxes                                         (618,000)          -
      Loss on disposal of property and equipment                       4,000           -
  Changes in operating assets and liabilities:
      Accounts receivable                                         (1,986,000)      (3,289,000)
      Costs of uncompleted contracts in
        excess of billings and other current assets                 (832,000)      (2,256,000)
      Accounts payable and accrued expenses                        1,398,000        3,888,000
      Billing in excess of related costs                          (4,416,000)       2,668,000
      Income taxes payable                                            45,000          195,000
                                                                      ------          -------
        Net cash (used in) provided by operating activities      ($3,210,000)      $3,449,000

Investing Activities
  Purchase of property and equipment                              (1,379,000)        (364,000)
  Purchase of software                                              (312,000)        (142,000)
  Decrease in other assets                                            33,000           90,000
                                                                      ------           ------
    Net cash used in investing activities                        ($1,658,000)       ($416,000)

Financing Activities
  Proceeds from issuance of common stock                              37,000           32,000
  Principal payments on line of credit and long
    term borrowings                                                        0         (456,000)
                                                                           -         --------

    Net cash provided by (used in) financing activities              $37,000        ($424,000)

  (Decrease) increase in cash and cash equivalents                (4,831,000)       2,609,000
  Cash and cash equivalents at beginning of year                   7,248,000        4,444,000
                                                                   ---------        ---------
  Cash and cash equivalents at end of period                      $2,417,000       $7,053,000
                                                                  ==========       ==========
</TABLE>


See notes to condensed consolidated financial statements.


                                       4
<PAGE>


        Notes to Condensed Consolidated Financial Statements (Unaudited)

                                 March 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 and six month  periods ended March 31, 2000 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                           SIX MONTHS ENDED
                                 March 31, 2000        March 31, 1999         March 31, 2000        March 31, 1999
                                 --------------        --------------         --------------        --------------
<S>                              <C>                   <C>                    <C>                 <C>

Basic earnings per share                $0.34                 $0.24                  $0.68                $0.48
Shares outstanding                  3,839,027             3,806,546              3,837,292            3,803,432

Diluted earnings per share              $0.31                 $0.22                  $0.62                $0.44
Shares outstanding                  4,171,620             4,149,513              4,202,871            4,112,210
</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 March 31, 2000 (second  quarter of fiscal
2000)  increased  9.6% as  compared  to the second  quarter  of fiscal  1999 and
increased 6.7% as compared to the previous  quarter.  Operating  revenues (total
revenues  excluding  pass through  costs) for the second  quarter of fiscal 2000
increased  20.0% as compared to the second  quarter of fiscal 1999 and increased
4.0% as compared to the previous quarter.

Pass through costs,  expressed as a percentage of total  revenues,  decreased to
22.0%  compared to 28.8% in the second quarter of fiscal 1999 and increased from
20.0% in the previous  quarter.  Pass through  costs will vary  depending on the
need for specialty subconsultants and governmental subcontract requirements.

Costs of services,  expressed as a percentage of operating  revenues,  decreased
slightly  to 83.6% for the  second  quarter  of fiscal  2000 from  84.0% for the
second  quarter of fiscal 1999 and is comparable to 83.6%  recorded in the first
quarter of fiscal  2000.  The  absolute  cost of  services  increased  due to an
increase in labor related expenses and information technology costs.

General and  administrative  expense,  expressed  as a  percentage  of operating
revenue,  was 7.9% in the second  quarter  of fiscal  2000 and is lower than the
8.9% recorded in the second quarter of fiscal 1999 and is comparable to the 7.8%
recorded in the previous quarter. The decrease from the second quarter of fiscal
1999 is due primarily to an increase in operating revenues noted above.

Interest income,  net of interest  expense,  decreased to $22,000 for the second
quarter of fiscal  2000 from  $38,000 in the second  quarter of fiscal  1999 and
from $55,000 in the previous quarter due to lower cash balances as cash has been
used to finance operating activities.

Income tax  expense  for the second  quarter of fiscal 2000 was 46.1% of pre-tax
income  compared  to 46.1% in the  first  quarter  of  fiscal  1999 and 47.3% of
pre-tax income for the same period last year.


                                       6
<PAGE>
The  decrease  from the second  quarter of fiscal 1999 is due to  non-deductible
expenses being lower as a percentage of increased  second quarter pre-tax income
from last year.

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

Financial Condition and Liquidity

Working  capital  increased  to  $19,528,000  from  $18,805,000  in the previous
quarter.  Cash has declined by $4,831,000 since the beginning of the fiscal year
due  primarily  to an increase in accounts  receivable  and costs and  estimated
profits on uncompleted contracts in excess of related billings of $3,279,000 and
purchases of property,  equipment,  and software of  $1,619,000.  On February 3,
2000 the  Company  obtained  a new  $12,000,000  committed  line of credit  from
another financial  institution replacing the previously existing line of credit.
The  agreement  provides  that the Company may borrow up to ten million  dollars
($10,000,000)  and  issue  letters  of  credit  for  up to two  million  dollars
($2,000,000) and requires the Company to meet certain  financial  covenants.  Of
the total $12,000,000 line, approximately  $11,000,000 is 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 March 31, 2000 is approximately $220 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

           In 1992,  the Company's  former  professional  liability  insurer was
found  liable  for  approximately  $4,000,000  due  to  a  previous  arbitration
proceeding allegedly relating to an asset acquisition. The judgment was reversed
on appeal in 1994.  The plaintiffs in that action filed an action to enforce the
arbitration  in the Supreme  Court of New York in 1992 against the  Company.  On
March 3, 1994 the plaintiffs  sought to garnish the proceeds of the professional
liability policy by commencing a proceeding in the Philadelphia  Court of Common
Pleas  against  the  Company's   professional  liability  insurer.  The  Company
intervened  in the  garnishment  proceeding.  This  proceeding  had been  stayed
pending  resolution  of the Skinner  Litigation.  This  litigation is now moving
forward. The Company and the Company's  professional  liability insurer continue
to deny liability and intend to vigorously pursue defenses available to them. If
the  outcome of the  litigation  is adverse to the  Company  and the  Company is
required to pay amounts in excess of the policy limits of its insurance  policy,
it could have a material adverse effect on the earnings and financial  condition
of the  Company  in the year such  determination  is made;  however,  management
believes that the final  resolution of this  litigation will not have a material
adverse effect on the Company's financial condition.

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

           The Annual Meeting of  Shareholders  of STV Group,  Incorporated  was
           held, Wednesday, March 29, 2000 at which the following directors were
           elected for a term of three (3) years:

           William J. Doyle
           Richard L. Holland
           Michael Haratunian

Item 5.    Other Information

           Not applicable.


                                       8
<PAGE>
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 27 - Financial Data Schedule

           (b)   Reports on Form 8-K

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


                                       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)




  May 15, 2000                        By:  /s/ Dominick M. Servedio
-----------------                          -------------------------------------
       Date                                Dominick M. Servedio
                                           President and Chief Executive Officer






  May 15, 2000                        By:  /s/ Peter W. Knipe
-----------------                          -------------------------------------
     Date                                  Peter W. Knipe
                                           Chief Financial Officer


                                       10