The Battle Road Tech Index™ climbed 0.2 percent for the week ended May 22, 2009, closing at 1212. Year-to-date, the index is up 21.2 percent, having started at a value of 1000. For the week, 14 of the 25 Index components were in positive territory.

The following companies were notable movers for the week:

SAP (NYSE: SAP, $41.71) rose 6.3 percent this week amid widespread rallies, as investors put more stock behind the prospect of an imminent economic recovery. SAP’s business has been particularly susceptible to economic weakness with 43 percent of its revenue coming from the highly cyclical manufacturing vertical.

Shares of Western Digital (NYSE: WDC, $24.48) gained 5.7 percent in the past week. On Wednesday, the company announced that it agreed to sell a manufacturing facility in Malaysia to Hitachi Global Storage Technologies, the hard drive manufacturing unit of Hitachi (NYSE: HIT). With the economic downturn bringing about a lack of hard drive demand, Western Digital was forced to reduce its manufacturing capacity to match lower unit sales. Rather than close the plant, the company was able to sell to its competitor Hitachi, the number three hard-drive manufacturer by unit sales behind WD and Seagate (NASDAQ: STX). In addition, Standard & Poor’s said Western Digital will replace Embarq in the S&P 500 stock index. Embarq is being acquired by CenturyTel in a deal expected to close soon.

Salesforce.com (NYSE: CRM, $36.15) shares fell 10.1 percent for the week as the company reported its Q1 results. Management lowered its revenue guidance for the year, as top line growth is expected to slow from 44 percent last year to as low as 16 percent this year. The company is scaling back on sales and marketing expenses, driving earnings growth as revenue growth opportunities are eroding. While the company attributes the slowdown to economic weakness, investors remain concerned that growth at Salesforce has reached a peak.