Redeye states that while Automotive sales came in as expected, Behavioral Research’s unexpectedly weak quarter made overall Q3 sales fall below our estimates. We see the good underlying growth in license revenue of +100% y/y, indications of a production ramp-up within AIS, and ramp-up from an American OEM as signals of Automotive returning to sequential growth in Q4. With design win season approaching, Redeye expects a good news flow in Q4 and Q1. However, a slightly postponed market outlook for DMS makes Redeye adjust its estimates and fair value range downwards.
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