(FORTUNE Magazine) – The telephone manufacturing industry was in the midst of a brutal shakeout when TeleQuest was launched three years ago in Burbank, California, but the company's founders dialed the right number for success. TeleQuest phones feature striking designs, contemporary colors, plenty of push-button features, and high prices; among them are the high-tech, metallic-colored Prism and the curvaceous, brightly colored Hot Lips. TeleQuest sells the phones, priced from $50 to $100, in department stores and through affiliates of regional Bell holding companies. Last year sales grew 200% to $17.8 million, and profits soared tenfold to $1.7 million. The company plans its first public offering this spring.