Adva Optical Networking’s partnership with Alcatel-Lucent has thinned about as much as it can, the equipment vendor said today.

Revenue from Alcatel-Lucent sank from more than 9 million euros in the second quarter to about 1 million euros in the third quarter, Adva said. As a result, revenue from the America’s dropped about 28% sequentially to 15 million euros in the third quarter, and total revenue dropped nearly 9% sequentially to 61 million euros.

“We have reached the bottom,” Adva Chief Executive Officer Brian Protiva said of the impact of Alcatel-Lucent. “There’s not much more we can lose in the U.S. going forward.”

Adva had warned in August that revenue from its North American reseller would fall “strongly” in the third quarter to about 1.2 million euros. Though Alcatel-Lucent cancelled some existing orders for Adva gear in the second quarter, the megavendor could potentially increase orders slightly next year as it works to empty its product inventories of Adva gear, Protiva said today.

Total third-quarter revenue was up nearly 16% from a year earlier, however. And Adva expects a sequential increase in revenue from North America in this year’s fourth quarter.

When Adva acquired optical equipment vendor Movaz Networks in 2005, the company anticipated a possible dissolution of Movaz’s existing partnership with Adva’s competitor, Lucent Technologies. Lucent’s merger with Alcatel gave it even more competing optical gear.

Adva still has a partnership with Fujitsu Network Communications, which sells its Ethernet access gear in the U.S.