I had to create a simple script to turn a neon sign on and off. I decided to have both versions of the sign in a single texture and changing the offset with a script. Instead of using a timer and using <font face="Courier New">llSetTimeout()</font> instead I opted to pause the script for a small amount of time. The script does not respond when it's sleeping which should be less laggy then the timeout. All i do then at the start of a state is offsetting the texture to show the on/off alternatively.
<font face="Courier New">default { state_entry() { llOffsetTexture(0.0,0.25,ALL_SIDES); llSleep(1.37); state off; } } </font>
<font face="Courier New">state off { state_entry() { llOffsetTexture(0.0,0.75,ALL_SIDES); llSleep(.723); state default; } }</font>
Hope this is of use to you. See the result in our Higher / Lower game at Badmoon.