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 JUNE 30, 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 June  30,  2000,  there  were  3,855,318  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.............................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, 1999.


                                       1
<PAGE>


                          PART I: FINANCIAL INFORMATION

Item 1.  Financial Statements

                    STV GROUP, INCORPORATED AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                           June 30, 2000     September 30, 1999
<S>                                                        <C>                 <C>

ASSETS
Current Assets
  Cash and cash equivalents                                       $72,000          $7,248,000
  Accounts receivable                                          34,758,000          30,590,000
  Costs and estimated profits of uncompleted
    contracts in excess of related billings                    18,612,000          17,029,000
  Prepaid expenses and other current assets                     1,228,000             829,000
                                                                ---------             -------

  Total Current Assets                                         54,670,000          55,696,000

Property and equipment                                          7,489,000           6,645,000

Less accumulated depreciation                                   4,494,000           4,832,000
                                                                ---------           ---------

    Net property and equipment                                  2,995,000           1,813,000

Deferred income taxes                                           2,802,000           2,443,000

Other assets                                                      861,000             782,000
                                                                  -------             -------

      TOTAL                                                   $61,328,000         $60,734,000
                                                              ===========         ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Notes and accounts payable                                 $9,821,000          $7,675,000
    Accrued expenses                                           10,100,000          10,211,000
    Billings on uncompleted contracts in excess of
      related costs                                            11,600,000          17,094,000
    Current portion of long term debt                             116,000             110,000
    Deferred income taxes                                       1,716,000           2,137,000
    Income tax payable                                            620,000             876,000
                                                                  -------             -------

      Total Current Liabilities                                33,973,000          38,103,000

  Long-term debt                                                3,556,000           2,794,000
  Post-retirement benefits                                      1,190,000           1,070,000

  Stockholders' Equity
    Common stock                                                2,052,000           2,041,000
    Capital in excess of par                                    3,538,000           3,445,000
    Retained earnings                                          17,790,000          14,052,000
                                                               ----------          ----------

      Total                                                    23,380,000          19,538,000
        Less:  Treasury stock                                     771,000             771,000
                                                                  -------             -------

      Total Stockholders' Equity                               22,609,000          18,767,000

      TOTAL                                                   $61,328,000         $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                NINE MONTHS ENDED
                                                       June 30                     June 30
                                               2000          1999               2000           1999
<S>                                     <C>            <C>                <C>            <C>

Revenues

Total revenues                             $39,806,000    $34,670,000       $110,590,000   $102,236,000
Less subcontract and procurement costs      11,404,000      9,813,000         26,280,000     30,762,000
                                            ----------      ---------         ----------     ----------

Operating Revenue                          $28,402,000    $24,857,000        $84,310,000    $71,474,000

Costs and Expenses

Costs of services and sales                 24,119,000     20,902,000         70,849,000     60,259,000
General and administrative                   2,169,000      2,228,000          6,563,000      6,091,000
                                             ---------      ---------          ---------      ---------

Total Costs and Expenses                    26,288,000     23,130,000         77,412,000     66,350,000

Interest expense                               (49,000)       (35,000)          (130,000)      (149,000)
Interest income                                 59,000         77,000            217,000        228,000
                                                ------         ------            -------        -------

Income Before Income Taxes                   2,124,000      1,769,000          6,985,000      5,203,000

Income taxes                                 1,004,000        857,000          3,247,000      2,469,000
                                             ---------        -------          ---------      ---------

Net Income                                  $1,120,000       $912,000         $3,738,000     $2,734,000
                                            ==========       ========         ==========     ==========

Basic earnings per share:                         $.29           $.24               $.97           $.72
Diluted earnings per share:                       $.27           $.22               $.90           $.65
</TABLE>


See notes to condensed consolidated financial statements.


                                       3
<PAGE>


                    STV GROUP, INCORPORATED AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                     NINE MONTHS ENDED
                                                                          June 30
                                                                    2000             1999
<S>                                                           <C>              <C>

Operating Activities
  Net Income                                                     $3,738,000       $2,734,000
  Adjustments to reconcile net income to
    net cash provided by operating activities:
      Depreciation and amortization                                 888,000          632,000
      Deferred income taxes                                        (780,000)          -
      Loss on disposal of property and equipment                      4,000           -
  Changes in operating assets and liabilities:
      Accounts receivable                                        (4,168,000)      (5,164,000)
      Costs of uncompleted contracts in
        excess of billings and other current assets              (1,982,000)      (2,136,000)
      Accounts payable and accrued expenses                       2,123,000        1,364,000
      Billing in excess of related costs                         (5,494,000)       3,469,000
      Income taxes payable                                         (256,000)          (3,000)
                                                                   --------           ------
        Net cash (used in) provided by operating activities     ($5,927,000)        $896,000

Investing Activities
  Purchase of property and equipment                             (1,843,000)        (653,000)
  Purchase of software                                             (346,000)        (272,000)
  Decrease in other assets                                           36,000          104,000
                                                                     ------          -------
    Net cash used in investing activities                       ($2,153,000)       ($821,000)

Financing Activities
  Proceeds from issuance of common stock                            104,000           75,000
  Proceeds from line of credit and long term borrowings           3,250,000           -
  Principal payments on line of credit and long
    term borrowings                                              (2,450,000)        (521,000)
                                                                 ----------         --------
    Net cash provided by (used in) financing activities            $904,000        ($446,000)

  Decrease in cash and cash equivalents                          (7,176,000)        (371,000)
  Cash and cash equivalents at beginning of year                  7,248,000        4,444,000
                                                                  ---------        ---------
  Cash and cash equivalents at end of period                        $72,000       $4,073,000
                                                                    =======       ==========
</TABLE>


See notes to condensed consolidated financial statements.


                                       4
<PAGE>


        Notes to Condensed Consolidated Financial Statements (Unaudited)

                                  June 30, 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 nine month  periods ended June 30, 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                           NINE MONTHS ENDED
                                  June 30, 2000         June 30, 1999          June 30, 2000         June 30, 1999
                                  -------------         -------------          -------------         -------------
<S>                              <C>                   <C>                    <C>                   <C>

Basic earnings per share                $0.29                 $0.24                  $0.97                $0.72
Shares outstanding                  3,844,021             3,815,686              3,839,535            3,807,517

Diluted earnings per share              $0.27                 $0.22                  $0.90                $0.65
Shares outstanding                  4,120,069             4,231,841              4,175,270            4,175,114
</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 June 30, 2000 (third  quarter fiscal 2000)
increased  14.8% as compared to the third  quarter of fiscal 1999 and  increased
8.9% as compared to the previous  quarter.  Operating  revenues  (total revenues
excluding  pass-through  costs) increased 14.2% as compared to the third quarter
of fiscal 1999 and remained constant with the previous quarter.

Pass-through  costs,  expressed as a percentage of total revenues,  increased to
28.7% as  compared to 28.3% in the third  quarter of fiscal  1999 and  increased
from 22.0% in the previous  quarter.  Pass-through  costs will vary depending on
the need for specialty subconsultants and governmental subcontract requirements.

Cost of services,  expressed as a percentage of operating revenues, increased to
84.9% for the third  quarter of fiscal  2000 from 84.1% in the third  quarter of
fiscal 1999 and increased  from 83.6% in the previous  quarter.  The increase in
the  percentage  from the  previous  quarter  was due mainly to an  increase  in
marketing opportunities.

General and  administrative  expense,  expressed  as a  percentage  of operating
revenue,  decreased to 7.6% in the third quarter of fiscal 2000 from 9.0% in the
third  quarter of fiscal 1999 and is comparable to 7.9% recorded in the previous
quarter.  The decrease from the third quarter of fiscal 1999 is due primarily to
the increase in operating revenues noted above.

Interest  income,  net of interest  expense,  decreased to $10,000 for the third
quarter of fiscal 2000 from $42,000 in the third quarter of fiscal 1999 and from
$22,000 in the previous quarter due to lower cash balances as cash has been used
to finance growing operating activities.

Income tax  expense  for the third  quarter of fiscal  2000 was 47.3% of pre-tax
income  compared  to 46.1% in the  second  quarter  of fiscal  2000 and 48.4% of
pre-tax  income for the same  period  last year.  The  increase  from the second
quarter is due to non-deductible expenses being higher on lower


                                       6
<PAGE>


pre-tax  income.  The decrease  from the third  quarter of fiscal 1999 is due to
non-deductible  expenses being lower as a percentage of increased  third quarter
pre-tax income.

Diluted  earnings per common share for the third quarter of fiscal 2000 was $.27
cents versus $.22 cents for the third quarter of fiscal 1999.

Financial Condition and Liquidity

Working  capital  increased  to  $20,697,000  from  $19,528,000  in the previous
quarter. Cash has declined by $7,176,000 since the beginning of the fiscal year.
This is due  primarily  to a  decline  in  pre-billings  in  excess  of costs of
$5,494,000,  an increase in accounts receivable related to growth of $4,168,000,
and the  purchases  of  property,  equipment,  and  software of  $2,189,000.  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 $10,000,000 and
issue  letters  of credit up to  $2,000,000  and  requires  the  Company to meet
certain  financial  covenants.  Approximately  $10,300,000  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 June 30, 2000 is approximately $200 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

        The "STV Group,  Incorporated  Non-Qualified  Management  Savings  Plan"
has been adopted  effective  June 1, 2000.  It is  primarily  for the purpose of
providing a deferred  compensation  alternative for a select group of management
or highly compensated employees.  The Company may elect to contribute a matching
contribution at its discretion.  Selected participants are allowed to save up to
50%  of  wages  and/or  bonuses  in  their  selected  investment  accounts  on a
pre-income  tax  basis.  This  benefit  will  allow  participants  to  save  for
retirement or receive benefits on a predetermined basis and should help attract
and maintain key employees.

        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 10.39 - STV Group, Incorporated Non-Qualified Management
             Savings Plan

             Exhibit 27 - Financial Data Schedule

        (b)  Reports on Form 8-K

             The Company  filed no reports on Form 8-K for the quarter ended
             June 30, 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)




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






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


                                       9