By dotting, the author probably means that $\vec{a} .\vec{b} = a^Tb$, for _vectors_ $a$ and $b$, so
$(Ax)^Ty = (Ax).y$,
and $x^T(A^T y ) = x.(A^Ty)$, note that $Ax$ and $A^Ty$ are vectors.
By dotting, the author probably means that $\vec{a} .\vec{b} = a^Tb$, for _vectors_ $a$ and $b$, so
$(Ax)^Ty = (Ax).y$,
and $x^T(A^T y ) = x.(A^Ty)$, note that $Ax$ and $A^Ty$ are vectors.