UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D. C.  20549
                                 FORM 10-QSB

(Mark One)
   XX     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended September 30, 2001
                                or
   __     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934

          For the transition period from ___________ to __________

                     Commission file number     1-9603

                         STEVENS INTERNATIONAL, INC.
      -----------------------------------------------------------------
      (Exact name of small business issuer as specified in its charter)

              Delaware                                  75-2159407
    ------------------------------------------------------------------
    (State or other jurisdiction of                  (IRS Employer
    incorporation or organization)                 Identification No.)

                  5700 E. Belknap, Fort Worth, Texas 76117
                  ----------------------------------------
              (Address of principal executive offices) (zip code)

                                 817/831-3911
                                 ------------
                         (Issuer's telephone number)

                  __________________________________________
             (Former name, former address and former fiscal year,
                        if changed since last report)

 Check whether  the issuer  (1) filed  all reports  required to  be filed  by
 Section 13 or 15(d) of the  Exchange Act during the  past 12 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    XX      No  _____

               APPLICABLE ONLY TO CORPORATE ISSUERS:
 State the number of shares outstanding of each of the issuer's classes of
 common equity, as of the latest practicable date:

       Title of Each Class               Outstanding at November 8, 2001
 -------------------------------         -------------------------------
 Series A Stock, $0.10 Par Value                   7,466,474
 Series B Stock, $0.10 Par Value                   2,035,659


 Transitional Small Business Disclosure Format (check one):

                          Yes _____      No     XX

<PAGE>

                              TABLE OF CONTENTS
                              -----------------

 Part I.   FINANCIAL INFORMATION                                  PAGE NUMBER

   Item 1. Financial Statements

            Consolidated Condensed Balance Sheet                       3
            September 30, 2001 (unaudited)

            Consolidated Condensed Statements of Operations            4
            Three and Nine months ended September 30, 2001
            and 2000 (unaudited)

            Consolidated Condensed Statement of                        5
            Stockholders' Deficit Nine months ended
            September 30, 2001  (unaudited)

            Consolidated Condensed Statements of Cash Flows            6
            Nine months ended September 30, 2001 and 2000
            (unaudited)

            Notes to Consolidated Condensed Financial                  7
            Statements (unaudited)

   Item 2. Management's Discussion and Analysis or                     9
           Plan of Operation


 Part II.  OTHER INFORMATION

   Item 1. Legal Proceedings                                           12
   Item 3. Defaults Upon Senior Securities                             13
   Item 6. Exhibits and Reports on Form 8-K                            14


   CAUTIONARY  STATEMENT -  This Form  10-QSB  may contain  statements  which
   constitute "forward-looking"  information as that term  is defined in  the
   Private Securities Litigation Reform Act of 1995 or by the Securities  and
   Exchange  Commission ("SEC")  in  its  rules,  regulations  and  releases.
   Stevens International,  Inc. (The "Company")  cautions investors that  any
   such forward-looking statements made by the Company are not guarantees  of
   future  performance and  that actual  results may  differ materially  from
   those in the forward-looking statements.   Some of the factors that  could
   cause actual results to differ materially from estimates contained in  the
   Company's forward-looking  statements are set forth  in the Form 10-K  for
   the year ended December 31, 2000.

<PAGE>
<TABLE>

                 STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
                    CONSOLIDATED CONDENSED BALANCE SHEET
                  (Amounts in thousands, except share data)


                                                           September 30, 2001
                                                             -------------
                                                              (Unaudited)
  <S>                                                         <C>
                          ASSETS
  Current assets:
   Cash                                                       $     14
   Trade accounts receivable, less allowance for
     losses of $103                                                337
   Inventories  (Note 3).                                        3,767
   Other current assets                                            443
                                                               -------
               Total current assets                              4,561
  Property, plant and equipment, net                             1,374
  Other assets, net                                                412
                                                               -------
                                                              $  6,347
                                                               =======
  LIABILITIES AND STOCKHOLDERS' DEFICIT
  Current liabilities:
   Trade accounts payable                                     $  1,131
   Other current liabilities                                     2,279
   Income taxes payable                                            110
   Customer deposits                                               187
   Bank credit facility (Note 4)                                 3,813
   Current portion of long-term debt                                20
                                                               -------
               Total current liabilities                         7,540

  10% convertible subordinated notes payable (Note 4)            1,102
  Note payable - stockholder                                     7,074
  Other long-term debt                                              27
  Accrued pension costs                                            656
  Commitments and contingencies (Note 5)
  Stockholders' deficit:
   Preferred stock, $0.10 par value, 2,000,000
    shares authorized, none issued and outstanding                   -
   Series A common stock, $0.10 par value, 20,000,000
    shares authorized, 7,467,000 shares issued and
    outstanding at September 30, 2001                              746
   Series B common stock, $0.10 par value, 6,000,000
    shares authorized, 2,036,000 shares issued and
    outstanding at September 30, 2001                              204
   Additional paid-in-capital                                   40,961
   Accumulated deficit                                         (51,963)
                                                               -------
   Total stockholders' deficit                                 (10,052)
                                                               -------
                                                              $  6,347
                                                               =======

          See notes to consolidated condensed financial statements.

</TABLE>
<PAGE>
<TABLE>

                   STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
                  CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                    (Unaudited)
                   (Amounts in thousands, except per share data)


                                       Three Months Ended      Nine months ended
                                          September 30           September 30
                                       2001         2000       2001        2000
                                      ------       ------     ------      ------
 <S>                                 <C>          <C>        <C>         <C>
 Net sales                           $   970      $ 1,008    $ 3,430     $ 3,049
 Cost of sales                           732          789      2,819       3,000
 Gross profit                            238          219        611          49
 Selling, general and
  administrative expenses                312          674      1,113       2,377
                                      ------       ------     ------      ------
 Operating income (loss)                 (74)        (455)      (502)     (2,328)
 Other income (expense):
   Interest income                         -            -          -           6
   Interest expense                     (275)        (245)      (717)     (1,631)
   Other, net                             (9)         336       (109)        208
   Gain (loss) on sale of assets           -            -          -        (273)
                                      ------       ------     ------      ------
                                        (284)          91       (826)     (1,690)
                                      ------       ------     ------      ------
 Income (loss) before income taxes      (358)        (364)    (1,328)     (4,018)
 Income tax (expense)  (Note 7)            -            -          -           -
                                      ------       ------     ------      ------
 Net income (loss)                   $  (358)     $  (364)   $(1,328)    $(4,018)
                                      ======       ======     ======      ======

 Earnings (loss) per share - basic
  and diluted (Note 8):
   Net income (loss) - basic
     and diluted                     $( 0.04)     $( 0.04)   $( 0.14)    $( 0.42)
                                      ======       ======     ======      ======
 Weighted average number of shares
  of common stock outstanding
  during the periods - basic
  and diluted (Note 8)                 9,502        9,502      9,502       9,502
                                      ======       ======     ======      ======

          See notes to consolidated condensed financial statements.

</TABLE>
<PAGE>
<TABLE>

                 STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
                                 (Unaudited)
                            (Amounts in thousands)


                                                              Additional
                             Series A Stock    Series B Stock   Paid-In  Accumulated
                             Shares  Amount    Shares  Amount   Capital   (Deficit)    Total
                             ------  ------    ------  ------   -------   --------    -------
 <S>                         <C>     <C>       <C>     <C>      <C>       <C>         <C>
 Balance, January 1, 2001     7,466  $  746     2,037  $  204   $40,961   $(50,635)   $(8,724)
 Net (loss)                       -       -         -       -         -     (1,328)    (1,328)
 Conversion of Series B
  stock to Series A stock         1      (1)        -       -         -          -          -
                             ------  ------    ------  ------   -------   --------    -------
 Balance, September 30, 2001  7,467  $  746     2,036  $  204   $40,961   $(51,963)  $(10,052)
                             ======  ======    ======  ======   =======   ========    =======

          See notes to consolidated condensed financial statements.

</TABLE>
<PAGE>
<TABLE>

                 STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
               CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                            (Amounts in thousands)

                                                            Nine Months Ended
                                                              September 30,
                                                           -------------------
                                                             2001        2000
                                                           -------     -------
 <S>                                                      <C>         <S>
 Cash flows from operations:
   Net (loss)                                             $ (1,328)   $ (4,018)

   Adjustments to reconcile net income (loss) to net
     cash provided by (used in) operating activities:
       Depreciation and amortization                           153         230
       Interest imputed on 10% convertible notes                 -       1,000
       Other                                                    24          71
       Changes in operating assets and liabilities:
         Trade accounts receivable                              55         495
         Contract costs in excess of billings                    -         109
         Inventories                                           381       1,438
         Other assets                                          (59)        (23)
         Trade accounts payable                               (260)       (765)
         Other liabilities                                   1,269      (1,229)
                                                           -------     -------
 Total cash provided by (used in) operating activities         235      (2,692)
                                                           -------     -------
 Cash flows from investing activities:
   Additions to property, plant and equipment                   (7)        (86)
   Decreases to property, plant and equipment                    -         370
                                                           -------     -------
 Total cash provided by (used in) investing activities          (7)        284
                                                           -------     -------
 Cash flows from financing activities:
   Net proceeds from 10% convertible debt                       52         900
   Net proceeds from (repayments of) long-term debt           (530)      1,587
   Decrease in current portion of long-term debt                 -         (74)
                                                           -------     -------
 Total cash provided by (used in) financing activities        (478)      2,413
                                                           -------     -------
 Increase (decrease) in cash                                  (250)          5
 Cash at beginning of period                                   264           6
                                                           -------     -------
 Cash at end of period                                    $     14    $     11
                                                           =======     =======
 Supplemental disclosure of cash flow
 information:
     Cash paid during the period for:
       Interest                                           $    214    $    226
       Income taxes                                            -0-         -0-


          See notes to consolidated condensed financial statements.

</TABLE>
<PAGE>

                 STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
             Notes to Consolidated Condensed Financial Statements
                            (Unaudited)

 1.   The consolidated condensed balance sheet as of September 30, 2001,  the
      consolidated condensed  statement  of  stockholders'  deficit  for  the
      period  ended  September  30,  2001,  and  the  consolidated  condensed
      statements of operations for the three and nine months ended  September
      30, 2001 and  2000, and statements  of cash flows  for the nine  months
      ended September 30,  2001 and 2000  have been prepared  by the  Company
      without audit.  In  the opinion of  management,  all adjustments (which
      include only normal recurring adjustments) necessary to present  fairly
      the financial position  as of  September 30,  2001 and  the results  of
      operations for the three and nine  months ended September 30, 2001  and
      2000 and the cash  flows for the nine  months ended September 30,  2001
      and 2000 have been made.

      The above financial  statements have been  prepared in accordance  with
      the instructions  to  Form 10-QSB  and  therefore do  not  include  all
      information included in the 2000 Form 10-K.  The results of  operations
      for the three and nine months ended September 30, 2001 and 2000 are not
      necessarily indicative of the results to be expected for the full year.

 2.   The  Company  designs,  manufactures,  markets  and  services   web-fed
      packaging and printing systems and related equipment for its  customers
      in the packaging industry and in the specialty/commercial and  banknote
      and securities segments  of the printing  industry.   The Company  also
      markets and manufactures high-speed image processing systems  primarily
      for use in the banknote and securities printing industry.  The  Company
      produces various types of equipment capable of converting and printing,
      among other  items,  food  and beverage  containers,  liquid  container
      cartons,  banknotes,  postage  stamps,  lottery  tickets,  direct  mail
      inserts,  personal   checks   and   business   forms.   The   Company's
      technological and engineering capabilities allow  it to combine any  of
      the four major printing technologies (offset, flexography,  rotogravure
      and intaglio) in its  systems.  Complete press  systems are capable  of
      multiple color  and multiple  size printing  and perform  such  related
      functions  as  numbering,  punching,  perforating,  slitting,  cutting,
      creasing, folding and stacking.  The  presses can be custom  engineered
      for non-standard form size and special auxiliary functions.

 3.   Inventories consist of the following:

                                         September 30, 2001
                                           -------------
                                            (Amounts in
                                             thousands)
        Finished product                      $   273
        Work in progress                           32
        Raw materials                           3,462
                                               ------
                                              $ 3,767
                                               ======


 4.   The bank credit facility due date was extended to January 7, 2002  with
      mandatory reductions  in borrowing  availability  of $25,000  per  week
      beginning  October 5, 2001.  The Company is  in the process of  finding
      suitable replacement financing.  For a description of the status of the
      bank credit facility at September 30, 2001, see "Liquidity and  Capital
      Resources". Substantially  all assets  of the  Company continue  to  be
      pledged as collateral on the Company's credit facilities.

      On March  31, 2000,  the Company  completed the  funding of  a  private
      placement of  $1 million  of 10%  convertible subordinated  notes  (the
      "Notes").  Net proceeds  of the notes  were  used for working  capital.
      The  notes were  issued in  increments of $50,000.  In  March 2001  and
      September 2000, the Notes were increased a total of $102,500 in lieu of
      paying the interest for the first twelve months in cash.  Interest  for
      the six months ended  September 30, 2001 has been accrued but not paid.
      The  Notes provide  that  such a Note can be declared  immediately  due
      and payable  by written notice to the Company.  No such notice has been
      received by the Company.  The  Notes  are  convertible  into  2,205,000
      shares of Series A Common Stock ("SVEIA") of the Company  at $0.50  per
      share,  subject to  adjustment.  The conversion of  the Notes is at the
      holder's  option anytime  on  or after the fifteenth  day following the
      original issue date of the  Notes and prior to the close of business on
      their maturity date. Issue costs for the Notes aggregated approximately
      $151,000.

      The Company has committed to register the shares that would be issuable
      upon conversion of the Notes.  Dilution to existing shareholders  would
      occur as  a result  of the  conversion of  the Notes  to 2.315  million
      shares  of Series A common stock.  Should  all the notes be  converted,
      these shareholders would own approximately 19% of the outstanding stock
      of  the  Company.  The first  quarter  of 2000  included a  charge  for
      imputed interest expense of $1 million with a corresponding $1  million
      increase in "Additional Paid in Capital"  for the excess of the  market
      value of the common stock over the conversion price.

 5.   The Company is subject to  various claims, including product  liability
      claims, which arise in the ordinary course of business, and is a  party
      to  various  legal   proceedings  that   constitute  ordinary   routine
      litigation incidental to the Company's business.  A successful  product
      liability claim brought against  the Company in  excess of its  product
      liability coverage  could  have  a material  adverse  effect  upon  the
      Company's business, operating results and financial condition.

      In management's opinion, the Company has adequate legal defense  and/or
      insurance coverage in respect to each  of these legal actions and  does
      not believe that such actions, if they occur either individually or  in
      the aggregate,  will  materially  affect the  Company's  operations  or
      financial  position.  See "Legal Proceedings"  herein and  in the  2000
      Form 10-K.

 6.   A description of the Company's most recent divestiture follows:

      Sale of SSMI

      In January  2000,  the  Company sold  its  French  repair  and  service
      company, SSMI,  for a  net aggregate  consideration of  $198,200.   The
      transaction resulted  in  an  aggregate 1999  loss  of  $1.65  million,
      including a 1999 loss on sale  of $0.05 million and a related  non-cash
      foreign currency adjustment of $1.6  million which had been  previously
      reported as a  charge against stockholder  equity in accumulated  other
      comprehensive loss.  SSMI  had  1999  revenues  of  $3 million  and  an
      operating loss of $0.13 million.  Net proceeds of this transaction were
      used to repay a portion of the  loans from Paul I. Stevens, which  were
      partially collateralized by a lien on this subsidiary.

 7.   The Company's effective  tax rate  was 0%  in 2001  and 2000.   Due  to
      accumulated losses,  there were  no recoverable  income taxes  for  the
      three and nine months ended September 30, 2001.

 8.   Basic earnings per share ("EPS") excludes  dilution and is computed  by
      dividing income  available  to  common shareholders  by  the  weighted-
      average number of common  shares outstanding for  the period.   Diluted
      EPS reflects the potential dilution that  could occur if securities  or
      other contracts to issue common stock were exercised or converted  into
      common stock. Stock options for 560,000 shares of common stock were not
      included in the computation of diluted  EPS because their effect  would
      have been anti-dilutive.

 9.   All revenues in the three and nine months ended September 30, 2001  and
      2000 were in the Company's banknote inspection, printing and  packaging
      equipment business segment.
<PAGE>


 ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR
          PLAN OF OPERATION

 RECENT DEVELOPMENTS

    Stevens International, Inc.  is continuing to experience losses and  cash
 flow  difficulties.  We are exploring  various alternatives  to solve  these
 problems,  including raising of  additional capital,  spin  off or  sale  of
 assets, recapitalization, mergers, and  aggressive pursuit of all  available
 currency  and printing equipment prospects.  There can be no assurance  that
 any of these initiatives will be successful.  The Company may be  forced  to
 file for bankruptcy if such initiatives are not successful.  Our liabilities
 may currently exceed the value of our assets.


 Liquidity and Capital Resources

    Our operations require  capital primarily to fund ongoing operations,  to
 service existing debt and to pursue  our strategic objectives including  new
 product development and penetration of  international markets.  Our  working
 capital needs typically increase because of  a number of factors,  including
 the duration of the manufacturing process  and the relatively large size  of
 most new  equipment orders.  Net cash provided  by operating activities  was
 $0.2 million in 2001.  Net cash  provided by (used in) operating  activities
 (before working capital requirements) was $(1.15) million in 2001.   Working
 capital provided cash of $1.3 million in 2001.

    On March 31, 2000, we completed a private placement of $1 million  of 10%
 convertible  subordinated  notes  ("the Notes")  due  March 31,  2003.   Net
 proceeds of the Notes were used for working capital.  The Notes were  issued
 in increments of $50,000.   In March, 2001 and September 2000, we elected to
 increase the Note in lieu of paying the interest for the first twelve months
 in  cash.  Interest for the  six months ended  September 30,  2001 has  been
 accrued.  The  $1,102,500  Notes are  convertible into  2,205,000 shares  of
 Series A Common Stock ("SVEIA") of  the Company at $0.50 per share,  subject
 to  adjustment.  The  conversion of  the  Notes is  at the  holder's  option
 anytime prior to the close of business on their maturity date.  Issue  costs
 for the Notes aggregated approximately $151,000.

     Our capital  expenditures were $7,500 in  2001, and were used  primarily
 for computer modernization.

    Our bank credit facility bears  interest at 3.25%  over prime and matures
 January 7, 2002.  Under the bank facility, the Company's maximum  borrowings
 are limited to a  borrowing base formula, which  cannot exceed $4.0  million
 and may be in the form  of direct borrowings and letters  of credit.  As  of
 September 30,  2001 there  were $3.8  million in  direct borrowings  and  no
 standby letters of credit outstanding,  with no additional availability  for
 such  borrowings.  The  Company  is  not  in  compliance with  some  of  the
 covenants of its senior bank line  of credit loan agreement.  The  principal
 default involved the failure to make  the required pension plan payments  in
 1999 and  2000, which  necessitated the  filing  of a  distress  termination
 request (see below).   The  Company's senior  lender has  declined to  grant
 waivers of the defaults.  Although the  bank can declare the full amount  of
 the loan  immediately  payable  at any  time,  it  has  not  done  so.   The
 borrowings under the bank credit facility are subject to various restrictive
 covenants related  to financial  ratios as  well as  limitations on  capital
 expenditures and additional indebtedness.  The Company is not allowed to pay
 dividends.

    The Company's bank  credit facilities have first liens on certain  assets
 of  the  Company,  principally  inventory,  accounts  receivable,  and   the
 Company's Texas  real  estate.   Paul  I. Stevens'  loans  aggregating  $7.0
 million at September  30, 2001  have first liens  on certain  assets of  the
 Company, principally  the  assets  of  a  foreign  subsidiary,  and  certain
 accounts receivable  for new  customer equipment.   Mr.  Stevens has  second
 liens  on  all other assets of the Company.  The secured loans from Paul  I.
 Stevens are due December 31, 2002 and bear interest at rates that vary up to
 2% over bank prime.

    The Company was  unable to pay certain pension plan minimum payments  due
 on September 15, 1999.  Accordingly, the  Company filed the necessary  forms
 with the Pension Benefit Guaranty Corporation ("PBGC") to initiate  distress
 terminations of the Company's two defined  benefit pension plans.  The  PBGC
 is a federal agency  that insures and protects  pension benefits in  certain
 pension  plans  when  the  sponsoring  company  cannot  make  the   required
 contributions to fund projected benefit obligations of the plans.

    The 1999 filing  for distress termination of the plans began a series  of
 negotiations with  the PBGC  regarding funding  of the  pension benefits  of
 employees.  The  PBGC  determined that  the Company  will be  unable to  pay
 benefits when due and that the plans must be terminated in order to  protect
 the interests  of the plan participants.  The PBGC became statutory  trustee
 at November 15, 1999, the effective date  of  the termination  of the plans.
 The PBGC,  on behalf  of  the Company's  pension  plan for  bargaining  unit
 employees, has filed liens  against all property and  rights to property  of
 the Company in  the aggregate amount  of $1.6 million.   The  assets of  the
 pension plans were also taken over  by the PBGC.   The Company and the  PBGC
 are negotiating terms of a financial settlement for installment payments  to
 be made by the Company to the PBGC over  the next 7-8 years.  The  estimated
 present value of the anticipated payments  to the PBGC has been recorded  at
 September 30, 2001 in the amount of $0.65 million.

    The  Company may incur, from  time to time,  additional short- and  long-
 term bank indebtedness (under its existing credit facility or otherwise) and
 may issue, in public or private transactions, its equity and debt securities
 to provide  additional funds  necessary for  the  continued pursuit  of  the
 Company's operational strategies.  The  availability and  terms of any  such
 sources of financing will depend on market and other conditions.  There  can
 be no assurance  that such  additional financing  will be  available or,  if
 available, will  be on  terms and  conditions  acceptable  to  the  Company.
 Through September  30, 2001,   the  Company's Chairman  and Chief  Executive
 Officer has  loaned  the Company  $7.0    million for  its  short-term  cash
 requirements.  As of November 8, 2001, this amount has not been repaid.

    The success  of the Company's plans will continue  to be impacted by  its
 ability to  achieve a  satisfactory level  of orders  for printing  systems,
 timely deliveries, the degree of international orders (which generally  have
 less favorable cash  flow terms and  require letters of  credit that  reduce
 credit availability),  and  improved terms  of  domestic orders.  While  the
 Company believes  it is  making progress  in these  areas, there  can be  no
 assurance that the Company will be successful in these endeavors.


 RESULTS OF OPERATIONS

 Comparison of Nine Months Ended September 30, 2001 and 2000

 Sales  The Company's  sales for the  nine months ended  September  30,  2001
 increased by $0.4 million (or 12.5%) compared to sales in the same period in
 2000 due  primarily  to  a  $1 million  2001  contract  for  converting  one
 automatic currency  examination  ("ACE") machine  to  inspect the  new  EURO
 banknotes, offset by decreases in packaging systems products ($0.6 million).

 Gross Profit      The Company's  gross  profit  for the  nine  months  ended
 September 30, 2001 increased  by $0.56 million compared  to gross profit  in
 the same period in  2000.  The gross  profit margin increased  to  17.8%  of
 sales as compared to a gross margin of 1.6% in the comparable period in 2000
 due to  the impact  of the  $1 million  contract discussed  in the  previous
 paragraph, reduced depreciation  expense in  2001, and  partially offset  by
 continuing high costs of idle plant  and underutilized personnel due to  low
 production volume in 2001 and 2000.

 Selling,  General  and  Administrative  Expenses    The  Company's  selling,
 general, and administrative expenses decreased  by $1.26 million  (or 53.2%)
 for the nine  months ended September 30, 2001 compared to the same period in
 2000 due to cost reduction efforts in connection with the reduced volume  of
 sales and certain insurance  premium refunds in  2001. Selling, general  and
 administrative expenses for the  nine months ended  September 30, 2001  were
 32.4% of sales compared to 78% of sales for  the same period in 2000 due  to
 the increase in sales  in 2001 and  the reduced level  of expense from  cost
 reductions.

 Other Income (Expense)    The Company's interest  expense decreased by  $0.9
 million for the nine  months ended September 30,  2001 compared to the  same
 period in 2000 due to the $1.0 million in imputed interest  recorded in 2000
 on the issuance of the 10% convertible subordinated notes due March 31, 2003
 (see Note 4).  Interest  income  was  negligible for  the nine months  ended
 September 30, 2001 and 2000.  The loss on sale of assets of $0.27 million in
 2000 was a result of  the sale of certain  assets and settlement of  certain
 obligations retained in the sale of Zerand Division in 1998.


 Comparison of Three Months Ended September 30, 2001 and 2000

 Sales  The  Company's sales for  the three months  ended September 30,  2001
 decreased by $0.04 million  (or 3.8%)  compared to sales in the same  period
 in 2000 due primarily to  a $1 million 2001  contract for converting an  ACE
 machine to inspect the new EURO  banknote, offset by decreases in  packaging
 systems products.

 Gross Profit    The  Company's  gross profit  for  the  three  months  ended
 September 30, 2001 increased  by $19  thousand  compared to gross profit  in
 the same  period in  2000 due  primarily to  the impact  of the  $1  million
 contract discussed in the previous paragraph, and from reduced  depreciation
 expenses in 2001.  Gross profit margin for 2001 increased to 24.5% of  sales
 as compared to  a gross margin  of 21.7% in  2000.  This  increase in  gross
 profit margin in 2001 was due primarily to the ACE conversion job previously
 discussed and reduced depreciation expense in 2001.

 Selling,  General  and  Administrative  Expenses    The  Company's  selling,
 general, and  administrative expenses decreased by $0.36 million  (or 53.7%)
 for the three months ended September 30, 2001 compared to the same period in
 2000 due to continuing cost reduction efforts and certain insurance  premium
 refunds in 2001.  Selling, general and administrative expenses for the three
 months ended September 30, 2001  were 32.2 % of  sales compared to 66.9%  of
 sales for the same period in 2000 due to cost reduction efforts.

 Other Income (Expense)   The Company's net interest expense increased by $30
 thousand for the three months ended September 30, 2001 compared to the  same
 period in 2000 due to the increased borrowing costs in 2001.

 Tax Matters    The  Company's effective state  and federal  income tax  rate
 ("effective tax rate") was 0% for 2001 and  2000.   Due to continuing losses
 in 2001,  there were  no recoverable  tax benefits  for the  three and  nine
 months ended September 30, 2001.

 Backlog and Orders   The Company's backlog of  unfilled orders at  September
 30, 2001 was approximately $0.9 million compared to $1.7 million at December
 31, 2000.  The backlog of repair and refurbished equipment jobs at September
 30, 2001 decreased $0.8 million as  compared to year-end 2000.  The  backlog
 at September 30 in each of the preceding five years has ranged from a low of
 $0.9 million in 2000 to a high of $13.8 million in 1997.

 Orders for  the nine  months  ended September  30,  2001 were  $2.7  million
 compared to $2.8 million  for the comparable period  in 2000, a decrease  of
 $0.1 million while shipments increased $381  thousand.  The decreased  order
 flow is the result of only one major printing and packaging system order  in
 the first nine months of 2001.

 When sales are recorded under the  completed contract method of  accounting,
 the Company normally experiences  a six to nine  month lag between the  time
 new orders are booked and the time  they are reflected in sales and  results
 of operations.  Larger orders, which are accounted for using the  percentage
 of completion method of  accounting, are reflected in  sales and results  of
 operations as the project progresses through the manufacturing cycle.


 PART II  OTHER INFORMATION

 Item 1.  Legal Proceedings

 On April 9,  2001, a  Waukesha, Wisconsin  County Circuit  Court, awarded  a
 $1.25 million  order  for  judgment  against  the  Company  and  its  former
 subsidiary, Zerand  Corporation,  related  to  a  dispute  over  an  alleged
 commission due to a European agent on  a 1989 project for the former  Soviet
 Union.  The  $1.25 million  is included  in "other  current liabilities"  at
 September 30, 2001.   There would be no assets available to collect on  this
 judgment due to prior lien holder claims, including our senior bank  lender,
 Paul I. Stevens, the Pension Benefit  Guaranty Corporation and the  Internal
 Revenue Service.  Although there  can be no certainty  as to the outcome  of
 negotiations, we are  attempting to  settle this  judgment on  a basis  more
 favorable to the Company.

 The Company  is  subject  to various  claims,  including  product  liability
 claims, which arise in the  ordinary course of business,  and is a party  to
 various  legal  proceedings  that  constitute  ordinary  routine  litigation
 incidental to the Company's business.   No assurance can be given  regarding
 the outcome of any case; however  a negative outcome in excess of  insurance
 coverage could have  a material adverse  effect on  the Company's  business,
 operating results and financial condition.


 Item 3.  Defaults Upon Senior Securities

 The Company  continues  to experience  weakness  in sales  and  losses  from
 operations due  to  a  declining  market  for  the  Company's  products  and
 competitive pressures.  As  a result, violations  of certain bank  financial
 covenants are continuing,  including failure to  make required pension  plan
 payments in 1999 and 2000, maintaining  of required working capital and  net
 worth covenants, and  the allowing of  certain court-ordered judgments  (see
 Item 1 above).

 The  Company's  senior lender has declined to grant waivers of the defaults.
 Although the  bank can  declare  the full  amount  of the  loan  immediately
 payable at any time, it has not done so.  The senior bank debt is classified
 as a current obligation at September 30, 2001.


 Item 6.  Exhibits and Reports on Form 8-K

          (a)  Exhibits:


  Exhibit  Number Description of Exhibit
  -------  -----------------------------
      3.1  Second Amended and Restated Certificate of Incorporation of
           the Company.(1)
      3.2  Bylaws of the Company, as amended.(2)
      4.1  Specimen of Series A Common Stock Certificate.(3)
      4.2  Specimen of Series B Common Stock Certificate.(4)
      4.3  Specimen of 10% Convertible Subordinated Note due March 31,
           2003.(5)
     11.1  Computation of Net Income per Common Share.(*)


   *Filed herewith.


 (1) Previously filed as an exhibit  to the Company's  Annual Report on  Form
     10-K for the year  ended December 31,  1990 and  incorporated herein  by
     reference.
 (2) Previously filed as an exhibit  to the Company's Registration  Statement
     on Form S-1 (No. 33-15279) and incorporated herein by reference.
 (3) Previously filed as an exhibit  to the Company's Registration  Statement
     on Form S-1 (No. 33-24486) and incorporated herein by reference.
 (4) Previously filed as an exhibit to the Company's report on Form 8-A filed
     August 19, 1988 and incorporated herein by reference.
 (5) Previously filed as an exhibit  to the Company's  Annual Report on  Form
     10-K  for the year  ended December 31,  1999 and  incorporated herein  by
     reference.

 (b)  Reports on Form 8-K.
       None.

<PAGE>

                                    SIGNATURES

    In accordance with the requirements of the Exchange Act , the  registrant
    has  duly  caused  this  report  to  be  signed  on  its  behalf  by  the
    undersigned, thereunto duly authorized.

                                    STEVENS INTERNATIONAL, INC.




    Date: November 9, 2001          By:  /s/  Paul I. Stevens
                                    -------------------------
                                    Paul I. Stevens
                                    Chief Executive Officer
                                    and Acting Chief Financial Officer