William Blair analyst Robert Napoli says that after speaking to WageWorks management, he understands that total government revenue is about $15M-$20M, or less than 5% of total revenue. The press release Friday morning refers to only one contract, so the revenue related to the revenue recognition problem is much less, Napoli tells investors in a research note. He believes WageWorks continues to operate the government contracts on a normal basis and expects that will remain over the long term. The analyst does not believe there was overbilling or anything done that was misleading to the government. As such, Napoli believes it is unlikely there was any fraud or illegal activities at WageWorks. Business continues to operate on a normal basis, the analyst contends. He believes the company's annual filing is likely to take a few weeks or more, however. The analyst does not have a rating on WageWorks. The stock in morning trading is down 6% to $39.95.