Adam Reach's well-struck winner sealed a hard-fought 1-0 victory for Town and left Derry staring at a second League One defeat to go along with FA Cup and Johnstone's Paint Trophy exits since he took charge.
But Derry said: "What I've said to the lads in the dressing room is we've lost a game of football but we haven't lost heart and we haven't lost the conviction of what we're trying to put over to the boys.
"The performance was there again and I was happy with the performance.
"We created a number of chances and I felt we could have been more clinical at times with them.
"I really believe the boys did well again and I'm disappointed they're going home with nothing once again."
Derry felt lively winger Jamal Campbell-Ryce was particularly unfortunate to end up on the losing side.
"I've played against Jamal a number of times and he's always been a difficult opponent," he added. "When I came in I said he was going to be a star player for us and I believe that. He put in a star performance here."
- Sports & Recreation