Avanti paid $100 million of the restitution to Cadence on July 26, and has pledged to pay another $40 million on Wednesday (Aug. 1). But the company said its cash resources aren't sufficient to pay the remainder.

"If Avanti is required to pay immediately the remaining balance of the restitution amount, Avanti's financial condition and present ability to finance its current level of business activity would be materially and adversely affected," the announcement said.

"Avanti is also seeking sources of additional funding with which to pay the remaining amount," the announcement said. "Although there can be no assurance that Avanti will succeed in obtaining payment terms or sources of additional funding, Avanti believes that cash it will generate from ongoing operations and other sources of capital will be sufficient to pay the remaining amount by January 15, 2002."

The restitution payment was ordered last week at the conclusion of the long-running criminal case against Avanti, in which Gerry Hsu, Avanti's former president and chief executive officer, and six current or former Avanti employees pled "no contest" to charges of source-code theft. Cadence has said it will now reactivate its civil suit against Avanti, which could result in further damages.

Commentary from Cadence on the proposed payment delay was not immediately available.