Waterford piled on the misery for relegation-threatened Derry by claiming a deserved victory at the Brandywell on Thursday evening.

Derry City suffered their first defeat under Gavin Dykes

The result leaves Derry without a win in 15 league games and still in the relegation play-off position.

All the goals came in the second half with Peter Hutton cancelling out David Mulcahy's goal but Alan Reilly settled the issue with a 71st minute goal.

Derry pressed hard in the closing stages but Gareth McGlynn, Sean Hargan and Peter Hutton all were thwarted.

Waterford hit the woodwork in the ninth minute from an Alan Reilly header.

Sean Hargan then had a chance for Derry in the 15th minute but his effort was blocked by Waterford goalkeeper Dan Connor.

Four minutes later, a mistake by Eddie McCallion let in Reilly again but Alan Gough produced the first of several great saves on the night.

Derry made a double substitution at half-time with Liam Coyle and Kevin Deery replacing Gary Beckett and Ciaran Martyn.

However, the home team was rocked seven minutes into the second half when Waterford captain David Mulcahy headed the visitors ahead after a Reilly corner.

Darryl Murphy then had a glorious chance to add to Waterford's lead but Gough managed to keep Derry in the game with another fine save.

We gave away two bad goals but we'll battle on and try and turn things around Gavin Dykes

Derry then levelled in the 66th minute when the superb Hutton headed a Deery cross past Connor.

But within five minutes, Waterford were ahead again with Neale Fenn outwitting Deery and setting up Reilly to score.

Gough made another great save a minute later to deny Vinny Sullivan.

Derry forced a series of chances in the closing stages but try as they might, they could not force an equaliser.

After the game, Derry officials were still refusing to comment on reports that Felix Healy could be set to make a return to the club.

Manager Gavin Dykes admitted that the speculation surrounding Healy had not helped preparations for the game.

"We could have done without that on the day of the game," said the boss, who was suffering his first defeat in his four matches as boss.

Dykes blamed poor defending for the defeat.