SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                  ------------

                                    Form 10-Q
                                  ------------
(Mark One)

    (X)         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                THE SECURITIES EXCHANGE ACT OF 1934
                For the quarterly period ended September 30, 1998

                                       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 0-12954


                        CADMUS COMMUNICATIONS CORPORATION
             (Exact name of registrant as specified in its charter)


           Virginia                                                   54-1274108
--------------------------------                               -----------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                          Identification Number)

                        6620 West Broad Street, Suite 240
                            Richmond, Virginia 23230
           (Address of principal executive offices including zip code)


               Registrant's telephone number, including area code:
                                 (804) 287-5680


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 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 X No___

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of October 31, 1998.

           Class                                Outstanding at October 31, 1998
           -----                                -------------------------------
Common Stock, $.50 Par Value                               7,888,751

<PAGE>


               CADMUS COMMUNICATIONS CORPORATION AND SUBSIDIARIES
                                      INDEX




<TABLE>
<CAPTION>
                                                                                       Page Number
                                                                                       -----------

<S>                                                                                       <C>
Part I.      Financial Information


             Item 1.      Financial Statements

                  Condensed Consolidated Balance Sheets --                                  3
                  September 30, 1998 (unaudited) and June 30, 1998

                  Condensed Consolidated Statements of Income (unaudited) --                4
                  Three Months Ended  September 30, 1998 and 1997

                  Condensed Consolidated Statements of Cash Flows (unaudited) --            5
                  Three Months Ended September 30, 1998 and 1997

                  Notes to Condensed Consolidated Financial Statements (unaudited)          6


             Item 2.      Management's Discussion and Analysis of Financial                 8
                          Condition and Results of Operations

             Item 3.      Quantitative and Qualitative Disclosures about Market Risk       11



Part II.     Other Information

             Item 6.      Exhibits and Reports on Form 8-K                                 11
</TABLE>

                                        2
<PAGE>


                          PART I. FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS
               CADMUS COMMUNICATIONS CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                                          September 30,       June 30,
                                                                             1998              1998
                                                                         --------------    ------------
                                                                           (Unaudited)
<S>                                                                     <C>                    <C>          
ASSETS
Current assets:
   Cash and cash equivalents                                              $      895       $       --
   Accounts receivable, less allowance for doubtful accounts                  74,290           70,571
   Inventories                                                                27,794           25,610
   Deferred income taxes                                                       3,093            3,832
   Prepaid expenses and other                                                  4,328            4,107
                                                                          -------------    -----------

        Total current assets                                                 110,400          104,120

Property, plant, and equipment (net of accumulated depreciation
   of $108,226 at September 30, 1998, and $107,269 at June 30, 1998)         129,858          133,836
Goodwill and other intangibles, net                                           49,639           48,158
Other assets                                                                   3,800            5,638
                                                                          -------------    -----------

TOTAL ASSETS                                                              $  293,697       $  291,752
                                                                          =============    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Short-term borrowings                                                  $    1,000       $    2,100
   Current maturities of long-term debt                                        6,090            6,431
   Accounts payable                                                           35,912           41,981
   Accrued expenses                                                           13,540           18,293
     Restructuring reserve                                                     2,114            4,378
                                                                          -------------    -----------

        Total current liabilities                                             58,656           73,183

Long-term debt, less current maturities                                      106,962           93,224
Other long-term liabilities                                                    9,491            8,867
Deferred income taxes                                                          6,770            6,662

Shareholders' equity:
    Common stock ($.50 par value; authorized shares-16,000,000
        shares; issued and outstanding shares-7,915,000 at
        September 30, 1998, and 7,921,000 at June 30, 1998)                    3,957            3,961
   Capital in excess of par value                                             53,403           53,532
   Retained earnings                                                          54,458           52,323
                                                                          -------------    -----------

        Total shareholders' equity                                           111,818          109,816
                                                                          -------------    -----------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                $  293,697       $  291,752
                                                                          =============    ===========

</TABLE>

See accompanying Notes to Condensed Consolidated Financial Statements.

                                        3
<PAGE>


               CADMUS COMMUNICATIONS CORPORATION AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (In thousands, except per share data)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                         Three Months Ended
                                                            September 30,
                                                    ------------------------------

                                                      1998                1997
                                                    ----------          ---------


<S>                                                <C>                 <C>      
Net sales                                          $   99,784          $  92,362
                                                    ----------          ---------

Operating expenses:
    Cost of sales                                      79,119             71,814
    Selling and administrative                         14,063             14,858
                                                    ----------          ---------
                                                       93,182             86,672
                                                    ----------          ---------

Operating income                                        6,602              5,690

Interest and other expenses:
    Interest                                            2,143              1,933
    Other, net                                            343                392
                                                    ----------          ---------
                                                        2,486              2,325
                                                    ----------          ---------

Income before income taxes                              4,116              3,365

Income tax expense                                      1,585              1,329
                                                    ----------          ---------

Net income                                         $    2,531          $   2,036
                                                    ==========          =========


Earnings per share - basic:
    Net income per share                           $      .32          $     .26
                                                    ==========          =========
    Weighted-average common shares
      outstanding                                       7,914              7,829
                                                    ==========          =========


Earnings per share - diluted:
    Net income per share                           $      .31          $     .25
                                                    ==========          =========
    Weighted-average common shares
      outstanding                                       8,206              8,109
                                                    ==========          =========

Cash dividends per common share                    $      .05          $     .05
                                                    ==========          =========
</TABLE>


See accompanying Notes to Condensed Consolidated Financial Statements.


                                        4
<PAGE>




               CADMUS COMMUNICATIONS CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       Three Months Ended
                                                                           September 30,
                                                                    -----------------------------

                                                                       1998              1997
                                                                    ------------      -----------
<S>                                                                <C>               <C>        
Operating Activities
Net income                                                         $     2,531       $     2,036
Adjustments to reconcile net income to net cash provided by
     (used in) operating activities:
     Depreciation and amortization                                       4,873             4,480
     Other, net                                                          1,119             1,259
                                                                    ------------      -----------
                                                                         8,523             7,775
                                                                    ------------      -----------
Changes in assets and liabilities, excluding debt and effects
        of acquisitions and dispositions:
    Accounts receivable, net                                            (2,854)           (1,569)
    Inventories                                                         (2,184)           (2,094)
    Accounts payable and accrued expenses                              (11,100)            2,781
    Restructure reserve (due to cash payments)                            (508)           (2,220)
    Payment to fund pension plan                                            --            (1,148)
    Other, net                                                            (383)             (108)
                                                                    ------------      -----------
                                                                       (17,029)           (4,358)
                                                                    ------------      -----------
Net cash provided by (used in) operating activities                     (8,506)            3,417
                                                                    ------------      -----------

Investing Activities
Purchases of property, plant, and equipment                             (2,367)           (4,074)
Other, net                                                                  --                (4)
                                                                    ------------      -----------
Net cash used in investing activities                                   (2,367)           (4,078)
                                                                    ------------      -----------

Financing Activities
Proceeds from (repayment of) short-term borrowings                      (1,100)            3,430
Repayment of long-term borrowings                                       (1,603)              (43)
Proceeds from (repayment of) long term revolving credit facility        15,000            (2,500)
Dividends paid                                                            (396)             (391)
Repurchase and retirement of common stock                               (2,119)             (118)
Issuance of stock                                                        1,986                --
Proceeds from exercise of stock options                                     --                99
                                                                    ------------      -----------
Net cash provided by financing activities                               11,768               477
                                                                    ------------      -----------


Increase (decrease) in cash and cash equivalents                           895              (184)

Cash and cash equivalents at beginning of period                            --               184
                                                                    ------------      -----------
Cash and cash equivalents at end of period                         $       895       $        --
                                                                    ============      ===========

</TABLE>

See accompanying Notes to Condensed Consolidated Financial Statements.

                                        5

<PAGE>

               CADMUS COMMUNICATIONS CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   The accompanying  unaudited condensed  consolidated financial statements of
     Cadmus  Communications  Corporation  have been prepared in accordance  with
     generally accepted accounting  principles for interim financial  reporting,
     and with applicable  quarterly reporting  regulations of the Securities and
     Exchange  Commission.  They  do not  include  all of  the  information  and
     footnotes required by generally accepted accounting principles for complete
     financial statements and,  accordingly,  should be read in conjunction with
     the consolidated financial statements and related footnotes included in the
     Company's  annual  report on Form 10-K for the  fiscal  year ended June 30,
     1998.

     In the  opinion  of  management,  all  adjustments  (consisting  of  normal
     recurring  adjustments)  considered  necessary for a fair  presentation  of
     interim financial information have been included. The results of operations
     for the period ended September 30, 1998, are not necessarily  indicative of
     results for the entire fiscal year.

2.   Basic  earnings  per share is  computed  on the  basis of  weighted-average
     common  shares  outstanding  from the date of issue.  Diluted  earnings per
     share  is  computed  on  the  basis  of   weighted-average   common  shares
     outstanding  plus common  shares  contingently  issuable  upon  exercise of
     dilutive  stock  options.  Incremental  shares for dilutive  stock options,
     computed under the treasury stock method,  were 292,000 and 280,000 for the
     quarter ended September 30, 1998 and 1997, respectively.

3.   In August 1998, the Board of Directors  approved an extension to August 31,
     1999, of its fiscal 1997 stock repurchase plan. Under the plan, the Company
     is authorized to repurchase up to 750,000 shares of its common stock. As of
     September  30, 1998,  approximately  196,000  shares have been  repurchased
     under this plan.

4.   On April 1, 1998, the Company acquired Germersheim,  Inc., an Atlanta-based
     national point of purchase marketing service provider for $13.7 million. Of
     $11 million in cash  payments  made during fiscal 1998, $2 million was held
     in escrow at June 30, 1998, as contingent consideration only to be released
     if specified  performance levels are met during each of the next two years.
     On August 31, 1998,  the Company,  the seller and the Escrow Agent  amended
     certain terms and conditions of the purchase and escrow agreements  related
     to this acquisition.  Pursuant to these amendments,  the Company issued, in
     the name of the seller,  93,500 shares of the Company's common stock, at an
     aggregate  market value of $2 million,  and  delivered  these shares to the
     Escrow Agent in exchange  for the $2 million of cash held in escrow.  These
     "Escrow Shares" are subject to certain terms and restrictions,  as outlined
     in the amended purchase and escrow agreements, and are held in escrow as of
     September  30, 1998, as  contingent  consideration,  to be released only if
     specified performance levels are met during each of the next two years.


                                       6
<PAGE>





5.   Components of net  inventories at September 30, 1998 and June 30, 1998 were
     as follows (in thousands): September 30, June 30,

                                            1998                1998
                                         ----------           ----------
     Raw materials and supplies          $   5,389            $   4,841
     Work in process:
          Materials                          7,109                6,567
          Other manufacturing costs         12,710               11,331
     Finished Goods                          2,586                2,871
                                         ===========          ==========
     Inventories                         $  27,794            $  25,610
                                         ===========          ==========


                                        7
<PAGE>


                 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


GENERAL
Cadmus Communications Corporation provides customers with integrated, end-to-end
information and communications  solutions.  These end-to-end solutions involve a
full range of creative,  production and  distribution  services.  The Company is
organized  around two business  sectors:  Professional  Communications,  serving
customers  who  publish  information  and  Marketing   Communications,   serving
customers who convey marketing  messages.  Headquartered in Richmond,  Virginia,
Cadmus is the 22nd largest graphic communications company in North America.

ORGANIZATIONAL STRUCTURE
The Company's current organizational  structure was effected during fiscal 1997,
when it announced a major  restructuring  plan designed to exit or reshape those
businesses  that were not  performing or were not core to its  strategy,  and to
create  a  more  efficient  and  cost  effective  organizational  structure.  In
conjunction with the restructuring,  the Company  reorganized its organizational
and operational  structure to form Cadmus  Marketing  Communications  and Cadmus
Professional  Communications.  The Company's previous  organizational  structure
consisted of the Periodicals, Graphic Communications,  Marketing, and Publishing
groups.

Cadmus  Professional  Communications  provides  a  full  range  of  composition,
editorial,  production,  distribution,  and related  services for  publishers of
scientific,  technical,  and  medical  journals,  magazines,  trade  association
publications  and  commercial  publications.   Cadmus  Marketing  Communications
provides   commercial   printing,   graphic   solutions,   print  and  broadcast
advertising,  direct  marketing,  catalog  and  collateral  design,  publication
development, financial communication, point of purchase, specialty packaging and
promotional  printing,  software  duplication and distribution,  and interactive
services to customers who convey marketing messages.

RESULTS OF OPERATIONS
The  following  table  presents  the  major  components  from  the  Consolidated
Statements  of  Income as a percent  of net  sales  for the three  months  ended
September 30, 1998 and 1997:

                                                        Three Months Ended
                                                           September 30,       
                                                           -------------       
                                                   1998                   1997 
                                                   ----                   ---- 

Net sales                                         100.0%                 100.0%
Cost of sales                                      79.3                   77.8
                                                  -----                  -----
Gross profit                                       20.7                   22.2
Selling and administrative expenses                14.1                   16.1
                                                  -----                  -----
Operating income                                    6.6                    6.1
Interest expense                                    2.1                    2.1
Other expenses, net                                 0.4                    0.4
                                                  -----                  -----
Income before income taxes                          4.1                    3.6
Income taxes                                        1.6                    1.4
                                                 ------                  -----
Net income                                          2.5%                   2.2%
                                                 ======                  =====


                                       8
<PAGE>

RESULTS OF OPERATIONS (continued)

Sales
Sales for the first  quarter of fiscal 1999 were $99.8  million,  an 8% increase
from sales of $92.4 million in the first quarter of fiscal 1998. The increase in
sales was driven by double-digit sales growth from the packaging/promotional and
graphic solutions businesses, and the inclusion of Germersheim point of purchase
sales this year. Adjusted for the acquisition of Germersheim, Inc., sales growth
was 4% in the quarter.

The Marketing Communications sector recorded sales of $49.8 million in the first
quarter of fiscal 1999, compared to $42.1 million in the first quarter of fiscal
1998,  representing  an increase of 18%. These higher sales  resulted  primarily
from the packaging and promotional printing group, which recorded a 15% increase
in sales, the graphic  solutions  group,  which also recorded a 15% sales growth
for the quarter,  and the point of purchase group, which recorded a 95% increase
in sales. The increase in the packaging and promotional group is attributable to
the  addition of new clients and  increased  work from  existing  clients,  made
possible by increased  manufacturing and sales capacity. The addition of several
major  clients as well as growth from  existing  clients  contributed  to higher
sales in the  graphic  solutions  group.  The  increase in the point of purchase
group was attributable to the impact of the Germersheim acquisition and internal
sales  growth.  Adjusting  for the  acquisition  of  Germersheim,  sales for the
Marketing Communications sector increased by 10%.

Sales for the Professional Communications sector were $50.7 million in the first
quarter of fiscal 1999,  up 1% from $50.2 million in the first quarter of fiscal
1998.  Adjusting for the effect of lower paper prices, sales increased by 3% for
this sector. This increase in sales was primarily attributable to internal sales
growth from journal  services.  Magazine sales were essentially flat compared to
the prior year.

Operating Expenses
Cost of sales  for the  first  quarter  of fiscal  1999  increased  10% to $79.1
million from $71.8 million last year, representing a decline in gross margins to
20.7% this year from 22.2% last year.  The  decrease  in margins  was  primarily
attributable to two factors:  (i) the negative impact due to the lower financial
transactional  volume this year,  and (ii) added  costs and  certain  production
inefficiencies  associated  with the  integration of the Company's POP business.
Partially offsetting these factors was continued gross margin improvement in the
professional communications sector resulting from restructuring-related  savings
and  continued  manufacturing  productivity  improvements,  as well as  improved
margins in the tactical marketing group due to an improved business mix.

Selling and administrative  expenses for the first quarter decreased 5% to $14.1
million  from $14.9  million in the prior year,  representing  a 200 basis point
improvement as a percentage of sales. This improvement was largely  attributable
to  better  overall  cost  management,  lower  selling  costs  in the  financial
communications  group,  lower costs in the tactical  marketing  group, and lower
selling and  administrative  expenses in the point of  purchase  operation  as a
result of the integration of Germersheim into that business.

Despite lower gross margins,  operating  income rose 16% in the first quarter to
$6.6 million,  and the operating  margin  improved  further to 6.6% of sales, up
from 6.1% last year.


                                       9
<PAGE>

Interest and Other Expenses and Income Taxes
Interest  expense for the first quarter of fiscal 1999 was $2.1 million compared
to $1.9 million for the same period of fiscal 1998,  representing an increase of
11%. The increase in interest  expense was  primarily  the result of higher debt
levels due to the acquisition of Germersheim in late fiscal 1998.  Total debt as
of the end of the first  quarter of fiscal 1999 was $114.1  million  compared to
$97.0 million as of the end of the first quarter of fiscal 1998.

The  effective  income tax rate  decreased  from  39.5% in the first  quarter of
fiscal 1998 to 38.5% in the first  quarter of fiscal 1999,  consistent  with the
38.5% annual rate the company experienced for fiscal year 1998.

LIQUIDITY AND CAPITAL RESOURCES

Management  believes that the Company has the financial  resources and access to
capital necessary to fund internal growth and acquisitions.  The Company's major
demands on capital are  investments in property,  plant and  equipment,  working
capital, and acquisitions.

Net cash used in operating activities totaled $8.5 million for the first quarter
of fiscal  1999,  representing  an $11.9  million  reduction  from $3.4  million
provided by operating activities in the prior year first quarter. The change was
primarily  attributable  to the final  payments made during the first quarter of
fiscal 1999 for certain production  equipment purchased in late fiscal 1998, and
to  payment  of fiscal  year  1998  sales and  management  incentives.  Seasonal
increases in receivables and inventory levels contributed towards higher working
capital  demands in the first quarter of fiscal 1999. The increases in cash used
in operating  activities  were partially  offset by a reduction in cash outflows
related to the Company's  restructure  plans announced in the fourth quarters of
fiscal years 1998 and 1997, and by a decrease in the required cash  contribution
to fund the Company's pension plan.

Net cash used in investing activities totaled $2.4 million for the first quarter
of fiscal 1999,  which  primarily  included  investments  in new presses and new
business and manufacturing systems.

Net cash  provided  by  financing  activities  was $11.8  million  for the first
quarter of fiscal  1999  compared to $.5 million in the same period of the prior
year. The Company  increased  borrowing by $12.3 million in the first quarter of
fiscal 1999 versus $.9 million in the first  quarter of 1998.  This increase was
used  primarily  to fund  the  working  capital  requirements  described  above.
Dividend  payments  remained  unchanged from the first quarter of fiscal 1998 at
$.4 million.

Total debt at September 30, 1998, was $114.1 million,  up from $101.8 million at
June 30, 1998 due to seasonal working capital requirements described above. As a
result of the increased  debt level,  the Company's  debt to total capital ratio
increased to 50.5% at September 31, 1998, from 48.1% at June 30, 1998.

YEAR 2000 ISSUE
Information  on the Year 2000 Issue as it relates  to the  Company is  presented
under the caption  "Management's  Discussion and Analysis" in the Company's 1998
Annual Report to Shareholders  and  incorporated by reference into the Company's
Form 10-K for the fiscal year ended June 30,  1998.  As of  September  30, 1998,
there were no material changes in Year 2000 risks,  plans and costs as described
in the 1998 Annual Report to Shareholders.


                                       10
<PAGE>

       ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes to the information  concerning the Company's
"Quantitative  and  Qualitative  Disclosures  about Market  Risk" as  previously
reported in the Company's Report on Form 10-K for the year ended June 30, 1998.




PART II - OTHER INFORMATION

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

              a)       Exhibits:

                  Exhibit 27        Financial Data Schedule

              b)  Reports on Form 8-K:

                  On July 31, 1998, the Company filed a Form 8-K, which included
                  the press  release dated July 30, 1998  regarding  fiscal 1998
                  fourth quarter and year-end  financial  results,  as well as a
                  copy of the  prepared  remarks  made on a  conference  call to
                  analysts on the same date.




                                       11
<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.


        CADMUS COMMUNICATIONS CORPORATION


Date:   November 12, 1998


        /s/ C. Stephenson Gillispie, Jr.                                 
        ------------------------------------------------
        C. Stephenson Gillispie, Jr.
        Chairman, President, and Chief Executive Officer




Date:   November 12, 1998


        /s/ Bruce V. Thomas                                               
        ------------------------------------------------
        Bruce V. Thomas
        Senior Vice President and Chief Financial Officer




                                       12