It sure can. I live in an area that reaches temperatures just as you described (Northwest Territories, Canada) and telescopes work just fine. Actually, cold winter skies are typically clearer since there is less humidity. There are a few words of warning I should give, though. As you can imagine one of the toughest parts is keeping your hands warm. You need to find gloves that are thick, but not so thick that you are unable to work the equipment, else you'll be taking your gloves off every 10 seconds.

Also, especially if you are using a refractor, make sure your scope has PLENTY of time to cool down to the temperature of the environment it is in! Refractors suffer from this especially because the lenses are sealed in a tube and the air inside does not change temperature as quickly as, say, a Newtonian or a Dobsonian which is open to the air. Even with Newtonian and Dobsonians, however, you want to make sure your mirror has had enough time to cool. Consequently, one of the best places to keep the actual tube assembly of your telescope and eyepieces when not in use is in a shed that is protected from the elements, but not heated. Then you won't have to wait for your scope to cool down. And, lastly, as with observing in any temperature or locale, try to do it on a night when it is not windy. Not only does it make for more comfortable observing, but you'll find the atmosphere is usually a little more cooperative (less flickering and atmospheric interference).

Hope this helps. Enjoy observing, and try to keep warm.

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