Returning by-refernce it is useful when you want to use function to find variable which should be bound to. When returning references, use this syntax:
function &find_var ($param) {
...code...
return $found_var;
}
$foo =& find_var ($bar);
$foo->x = 2;
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Note: Unlike parameter passing, here you have to use & in both places - to indicate that you return by-reference, not a copy as usual, and to indicate than reference binding and not usual assignment should be done for $foo.