Under sweltering heat at the Rizal Tennis Courts, Dandan, 14, led in both the first and second sets but couldnt keep the initiative that enabled Ferguson, ranked 46th in the world who drew a first round bye, to rally and clinch the win.
"I led both in the first and second sets but I just could not hold it. Hes (Ferguson) just too experienced," said Dandan, who idolizes Roger Federer of Switzerland and Juan Carlos Ferrero of Spain.
"But Im satisfied with my performance and hopefully I could gain more experience and compete well in future events like this one," he added.
Displaying superb shotmaking, Dandan broke Ferguson in the fifth game of the first set to seize a 3-2 lead but the Aussie struck back by taking the next three games that gave him a 5-3 lead.
Dandan battled back to force a tiebreak but Ferguson kept the Filipino at bay to take the tiebreaker, 7-4.
The second set was no different as the local bet, who made the round-of-16 in the tough mens division of last years Philippine Columbian Association Open, blew a 4-3 advantage and couldnt hold serve when the count was tied at 5-all.
"Sayang, I had a lot of chances but I could not capitalize on it," said Dandan, who is preparing to participate in the Group 5 ITF-sanctioned event in Seoul, Korea in July.
Boys top seed Karan Rastogi of India trounced Martin Sayer of Hong Kong, 6-0, 6-2, to forge a third round duel with No. 9 Tom Rushby of Great Britain, who edged Luka Ocvirk of Slovenia, 7-5, 6-3.
Also booking a seat in the next round were 14th pick Antal Van der Duim of the Netherlands, No. 4 William Ward of New Zealand, 16th seed Trijati Sunu Wahyu of Indonesia, No. 12 Rupesh Roy of India, fifth pick Coen Van Kuelen of the Netherlands;
Seventh seed Tushar Liberhan of India, No. 10 Philipp Oswald of Austria, Victor Leonte of Romania, third pick Joel Kerley, No. 6 Divij Sharan of India, 11th seed Jamie Murray of Great Britain, Todd Ley of Australia and Tristan Mahon Farron of Ireland.
In girls play, top seed Yung Jan Chan of Chinese Taipei walloped New Zealands Shona Lee, 6-2, 6-2, and Daniella Dominikovic of Australia stunned No. 15 Maya Rosa of Indonesia to set up a third round showdown.
Also booking seats in the next round were ninth pick Shuai Zhang of China, Tatjana Malek of Germany, No. 3 Sanaa Bhambri of India and Bianca Bonifante of Romania.
Zhang trounced Indian Punam Reddy, 6-2, 6-4, Malek outlasted Lee Ye-ra of Korea, 3-6, 6-4, 6-3; Bhambri overcame Indon Denise Harijanto, 6-0, 3-6, 6-3, and Bonifante zapped Bojana Bobusic of Australia, 6-4, 6-3.
This week-long event is made possible by the Philippine Tennis Association, the Philippine Sports Commission, Department of Tourism, Traders Hotel, Wilson Balls, Summit Natural Drinking Water and Drewberry cookies. Joey Villar