function parameters/output values

I would like to know if function parameters are used to pass output values
back to the function.

e.g.

create function func1(p1 varchar,p2 varchar OUTPUT, p3 varchar OUTPUT)
BEGIN
SELECT p1 = t.foo1, p3 = t.foo2
FROM test_table t
WHERE foo3 = p1
END

DECLARE p2 varchar(50), p3 varchar(50)
CALL func1('abc',@p2 out,@p3 out)
PRINT @p2
PRINT @p3
--
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