In my app, I get the name of the person calling from the contacts database and read it out. A user contacted me about a number in the format 123-456-7890 which doesn't work. I've tested this myself and can't see why it wouldn't work.
The full code I'm using is available here, but the relevant part is below:
Cursor c = getContentResolver().query(Contacts.Phones.CONTENT_URI,
new String[] {Contacts.Phones.DISPLAY_NAME},
selection,
args, null);