"I'm gutted, like all of the lads," said Smith. "We know we should have won it in the 90 minutes, but that's the way it goes. We have to pick ourselves up and move on.

"On Tuesday they knew what it was like to hurt after a game. It was our first defeat of the season, although we didn't lose the game, just the penalty shootout."

After Saturday's 1-1 draw at King's Marsh, AFC earning a qualifying round replay with a late Ollie Blackwell goal, Smith was relieved to be still in the competition.

"We were not good on Saturday. I told the players if they showed a 50 per cent improvement, we would win the replay. In fact it was a 100 per cent improvement."

Saturday he said had been a collective off-day, and although the fans singled out certain individuals for criticism, Smith refused to join in.

"I don't blame individual players. We rode our luck, and we were very lucky to get a second bite of the cherry."

At Lowestoft, tactical switches worked, with Sheridan Driver effectively shackling Jamie Godbold, an ever-present danger in the first game.

"We had a game plan that worked well for 70 minutes," said Smith. "They then stuck a big defender up front, as we did on Saturday, and we started to sit deep and invite trouble."

Lowestoft's two goals, he felt, "were scored as a result of diabolical decisions. But hopefully these things even up over the course of a season."

AFC scored from one of their first three penalties, Lowestoft converting their first four for a 4-1 win.

Smith will lift his players in training tonight. "We have to take what lessons we can from the defeat. I couldn't ask any more of the lads than they gave on Tuesday."

Goalkeeper Paul Catley, who returned from holiday earlier this week, may be in the team for the visit of Woodford on Saturday (3pm). Catley, injured pre-season, has yet to make an appearance.

Liam Jones' month's loan from Needham Market comes to an end next week, when AFC will have to consider whether to seek an extension.

Smith, who is currently engaged in talks with two players as he bids to strengthen the squad, is hoping the club can re-arrange a game for Saturday, September 13 which, following the Cup defeat, is blank.