Perhaps your coworker (my guess) has a genuine sophisticated vocab or maybe he tried to impress (show off, who knows?).
Anyway it´s a perfect understandable/correct expression, though many would think of it as a bit outdated, almost the equivalent to say "jóia/bacana/bater um fio/bizu" in Portuguese.http://verbobr.blogspot.com.br/2008/01/ ... os-60.html
In fact, if I had not see "bizu" there I would not deem it as a sisty-ish word, so used up to day...
One thing we can be certain, language depends on at least two subjects, if I hear some word that I am acquainted I understand it, if not, my brain ask me "what?" on the spot.
So, what seems outdated to some people will be perfectly comtemporary to another. That´s the beauty of communication!